Digital Imaging Express Pty Ltd, known as digiDirect, has faced penalties totaling $99,000 after the Australian Competition and Consumer Commission (ACCC) issued five infringement notices for misleading discount claims. The company admitted that its advertising practices were misleading, violating the Australian Consumer Law.

digiDirect had advertised various electronic products on its website with strikethrough prices that suggested significant discounts. However, these higher prices were rarely advertised and seldom sold, leading to claims of illusory discounts. For instance, a mini wireless keyboard was advertised at $149 with a strikethrough price of $229.

ACCC Deputy Chair Mick Keogh highlighted that such misleading claims can deceive consumers into believing they are receiving genuine discounts, which can influence their purchasing decisions. The ACCC first identified these misleading practices during a sweep of retailers' sales claims around the Black Friday sales period.

In response to the findings, digiDirect has provided a court-enforceable undertaking to the ACCC, committing to refrain from making misleading strikethrough discount claims and to implement a consumer law compliance program. The ACCC has emphasized its ongoing vigilance in monitoring misleading pricing claims in the retail sector.