Diamond merchant Carrerabenz Diamond Industries Pty Ltd has pleaded guilty in the Federal Court in Brisbane to 27 charges laid against the company by the Australian Competition and Consumer Commission (ACCC) for misleading consumers in the promotion of a series of diamond sales, Tacy reported.
The court heard that the company placed six advertisements in national newspapers promoting diamond sales at exhibition venues in Sydney, Melbourne, Adelaide and Perth between January and March 2003.
The advertisements listed each diamond or item of diamond jewelry with a unique stock number, together with a 'usual marked price' and a 'crazy price'. In each case, the 'usual marked price' was substantially higher (by between 42 percent and 233 percent) than the 'crazy price' offered to consumers at the sales. The company admitted to the court that the items had not previously been offered for sale in Australia, or offered at the 'usual marked price' as claimed.
In fining the company a total of US$214,000, Justice Logan said the purchase of a diamond can be a very special thing that a consumer will spend some time saving for, and usually for a special occasion. He said the company had engaged in a course of criminal conduct which was of the type that was not easy to detect and which involved considerable investment of public funds in its investigation and prosecution.
"In this case, consumers were enticed by the company's misleading advertising to attend the diamond sales in the mistaken belief that they would be getting a bargain based upon the difference between the 'usual' and 'crazy' price,” says Graeme Samuel, Chairman of the ACCC.
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