Early in January 2023 Mega Department Stores Ltd (MDS) decided to embark upon a major promotional...

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Early in January 2023 Mega Department Stores Ltd (MDS) decided to embark upon a major promotional campaign involving a number of different elements. However, before activating the campaign, it has sought your advice concerning whether any of the following elements of the campaign contravene, or could contravene, the ACL and if so how could this be avoided (if at all). What would you advise MDS? (a) A plan to attract customers by advertising for sale at "Now only $250 each" a discontinued line of television sets that it had previously sold for $1,000 each. (b) A plan to offer, at an advertised price of $99, a "Two for One" sale of toasters, previously selling for $80 each. (c) A plan to open an online store. This store would advertise goods online, accept orders and credit card payments from customers responding to advertisements, and send the goods to the customer if they were available in stock. (d) A plan to market to discerning members of the public its new high end "Outback" range of dining tables at "$15,000 + 10% GST" and to its corporate customers its new "Power" range of executive desks at "$10,000+ taxes and delivery charges". (e) A plan to offer customers a 10% discount on all their purchasers if they provided MDS with the names and addresses of three friends who might be interested in becoming members of MDS "Exclusive Discount Club" and a further discount of 5% should any of those friends join the club. Early in January 2023 Mega Department Stores Ltd (MDS) decided to embark upon a major promotional campaign involving a number of different elements. However, before activating the campaign, it has sought your advice concerning whether any of the following elements of the campaign contravene, or could contravene, the ACL and if so how could this be avoided (if at all). What would you advise MDS? (a) A plan to attract customers by advertising for sale at "Now only $250 each" a discontinued line of television sets that it had previously sold for $1,000 each. (b) A plan to offer, at an advertised price of $99, a "Two for One" sale of toasters, previously selling for $80 each. (c) A plan to open an online store. This store would advertise goods online, accept orders and credit card payments from customers responding to advertisements, and send the goods to the customer if they were available in stock. (d) A plan to market to discerning members of the public its new high end "Outback" range of dining tables at "$15,000 + 10% GST" and to its corporate customers its new "Power" range of executive desks at "$10,000+ taxes and delivery charges". (e) A plan to offer customers a 10% discount on all their purchasers if they provided MDS with the names and addresses of three friends who might be interested in becoming members of MDS "Exclusive Discount Club" and a further discount of 5% should any of those friends join the club.

Answer rating: 100% (QA)

ANSWER a The advertising of discontinued television sets at 250 each may potentially raise concerns ... View the full answer