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Navigating brand risk this Boxing Day


18 December 2019

Originally published in B&T Magazine
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In recent years, the chaos that is the Boxing Day sales has made its way online. And while it might be without the crowds and queues, in many ways, the online sales are just as crazy.

But with so many brands looking to outdo each other with attractive promotions, the Australian Competition and Consumer Commission (ACCC) is on the lookout for any misleading claims.

Speaking with B&T, Plexus senior solicitor Sharmila Pamamull (image below) warned against starting any promotions that could be deemed misleading this Boxing Day.

“We see brands run potentially risky campaigns and creative every single day. However, Boxing Day is a particularly problematic period for false or misleading advertising, even more so than Christmas. Retail brands are under pressure to meet sales targets, discount more stock and to conduct sales promotions across multiple channels,” she said.

“As a result, issues can arise relating to savings and promotions such as retailers falsely stating that a product will only be available at a particular price for a limited time or stock availability, or where the retailer fails to make a reasonable estimate of the likely response to their promotions.

“To avoid being on the ACCC’s naughty list and disappointing customers, brands need to clearly stipulate any limits to a promotion such as sales stock and sell discounted products for a long enough pre-discount period beforehand. Brands should not make claims to consumers about sales and promotions unless they are offering genuine savings. In an ever-evolving regulatory landscape, we can expect to see more brands leaning on technology providers to ensure marketing compliance and to protect its reputation and relationship with customers.”

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