Discounts can be a major drawcard for consumers, particularly shoppers looking to save in any way possible. However, it appears that not all discounts are as they seem, as underscored by the recent experience of thousands of customers who thought they were scoring a ‘pawsome’ deal on their pet supplies.

Millell Pty Ltd, more commonly known by its trading name Pet Circle, an online pet store, has been embroiled in a fur-flying fiasco. The Australian Competition and Consumer Commission (ACCC) has fined them $26,000 for a less-than-honest approach to discount offers.

In 2019, Pet Circle happily threw digital discount vouchers and codes out into the world, posting them on their website, sending them via email and SMS, and sharing with third parties.

Customers were likely excited at the prospect of saving a little on their furry friends’ favourite chew toys or preferred tinned delight.

Pet Circle was fined $26,000 by the Australian Competition and Consumer Commission (ACCC) due to misleading discounts. Credit: Pet Circle

However, that gloss was quickly tarnished when it became clear that customers were not receiving the anticipated discounts.

It seems around 5,400 customers were hoodwinked into thinking they were getting a decent deal on their pet supplies, only to be charged an additional fee to the value of the supposed discount at checkout.

An ACCC spokesperson said customers paid between $10 to $20 more than they should have.

More than that, a part of the contention was a statement on the Pet Circle website that read 'don’t pay $X and save Y%,' used between 2013 and 2019.

The ACCC found this misleading, as the price quoted was meant to be a comparable price from Pet Circle or one of its competitors.

However, Pet Circle admitted that this wasn't the case, and often, the higher price was the manufacturer's recommended retail price.

After the investigation, Pet Circle has been hit with a $26,640 fine for these false or misleading practices. They've promised to refund any affected customers and refrain from using any ambiguous 'don't pay' sales tactics in the future unless they accurately reflect a price offered by Pet Circle.

They've also committed to not charging customers added fees after checkout and to implement a compliance program to avoid future breaches of consumer law–or face another sternly wagging finger from the ACCC.

‘Online markets need to function well to support the modern economy. Part of that is ensuring consumers have the confidence they need to buy online. This requires retailers to accurately reflect the prices of goods sold on their websites,’ ACCC Commissioner Liza Carver said.

Key Takeaways

• Online pet store Pet Circle has been fined more than $26,000 for misleading customers about discounts.
  
• The Australian Competition and Consumer Commission (ACCC) revealed that the company misled about 5,400 customers, charging them more at the checkout instead of providing the
  promised discount.
  
• The online store was also fined for misleading customers with a 'don’t pay $X, and save Y%' statement on its website, as the price quoted was not genuinely reflective of the price charged by either Pet Circle or one of its competitors.
  
• The ACCC has confirmed that Pet Circle will refund any affected customers and has agreed to implement a compliance program to prevent future breaches of consumer law.
  

What do you think of this story, members? Did you experience something similar with other retailers? Share your experience in the comments below!

 

[mylittletibbies]

I used to deal with them, especially buying Nexgard Spectra, which is very expensive, on their special offer (%,off) but then found prices much cheaper elsewhere
Their original price, that was not mentioned, was much higher than elsewhere so even with the discount it was too expensive.
Now buy from Discount Pet Store where the discounts are genuine.

 

[blue61]

Discounts can be a major drawcard for consumers, particularly shoppers looking to save in any way possible. However, it appears that not all discounts are as they seem, as underscored by the recent experience of thousands of customers who thought they were scoring a ‘pawsome’ deal on their pet supplies.

Millell Pty Ltd, more commonly known by its trading name Pet Circle, an online pet store, has been embroiled in a fur-flying fiasco. The Australian Competition and Consumer Commission (ACCC) has fined them $26,000 for a less-than-honest approach to discount offers.

In 2019, Pet Circle happily threw digital discount vouchers and codes out into the world, posting them on their website, sending them via email and SMS, and sharing with third parties.

Customers were likely excited at the prospect of saving a little on their furry friends’ favourite chew toys or preferred tinned delight.

View attachment 29093

Pet Circle was fined $26,000 by the Australian Competition and Consumer Commission (ACCC) due to misleading discounts. Credit: Pet Circle

However, that gloss was quickly tarnished when it became clear that customers were not receiving the anticipated discounts.

It seems around 5,400 customers were hoodwinked into thinking they were getting a decent deal on their pet supplies, only to be charged an additional fee to the value of the supposed discount at checkout.

An ACCC spokesperson said customers paid between $10 to $20 more than they should have.

More than that, a part of the contention was a statement on the Pet Circle website that read 'don’t pay $X and save Y%,' used between 2013 and 2019.

The ACCC found this misleading, as the price quoted was meant to be a comparable price from Pet Circle or one of its competitors.

However, Pet Circle admitted that this wasn't the case, and often, the higher price was the manufacturer's recommended retail price.

After the investigation, Pet Circle has been hit with a $26,640 fine for these false or misleading practices. They've promised to refund any affected customers and refrain from using any ambiguous 'don't pay' sales tactics in the future unless they accurately reflect a price offered by Pet Circle.

They've also committed to not charging customers added fees after checkout and to implement a compliance program to avoid future breaches of consumer law–or face another sternly wagging finger from the ACCC.

‘Online markets need to function well to support the modern economy. Part of that is ensuring consumers have the confidence they need to buy online. This requires retailers to accurately reflect the prices of goods sold on their websites,’ ACCC Commissioner Liza Carver said.

Key Takeaways

• Online pet store Pet Circle has been fined more than $26,000 for misleading customers about discounts.
• The Australian Competition and Consumer Commission (ACCC) revealed that the company misled about 5,400 customers, charging them more at the checkout instead of providing the
  promised discount.
• The online store was also fined for misleading customers with a 'don’t pay $X, and save Y%' statement on its website, as the price quoted was not genuinely reflective of the price charged by either Pet Circle or one of its competitors.
• The ACCC has confirmed that Pet Circle will refund any affected customers and has agreed to implement a compliance program to prevent future breaches of consumer law.

What do you think of this story, members? Did you experience something similar with other retailers? Share your experience in the comments below!

I must be one of the lucky ones, I've been using pet circle for at least 7 yrs and haven't had any problems. When I told them I didn't receive my nexguard spectre with my dog food worth $200 they replaced them no questions asked.

 

[AlanQ]

sounds like they were following the Kogan online sale procedures, increase the price a couple of weeks before scheduled sale and then do the blurb as $xyz last week and this week 20% lower.

 

[johno cpfc]

This is not confined to this store it has been used by many many stores for years before they anounce a sale they quietly raise the price of articles to go on the sale by X amount so when the customer gets the bill it will show the discount. That discount comes of the new price not the original price.