The Australian Competition and Consumer Commission (ACCC) has initiated legal proceedings against The Bradford Exchange Ltd in the Federal Court, accusing the company of making false or misleading representations in its advertisements for collectible coins and ingots, violating the Australian Consumer Law.

Bradford, a global retailer specializing in coins and memorabilia, is alleged to have misled consumers through over 300 advertisements in various newspapers and magazines across Australia. The ACCC claims that the company represented that consumers would receive a single advertised item, while in reality, they were enrolled in a subscription for multiple items, sometimes up to 24, and charged accordingly.

In many instances, the subsequent items in these collections were priced significantly higher than the initially advertised item. For example, while the first item was priced at $29.99, later items could cost as much as $79.99. The ACCC further alleges that Bradford applied direct debits or invoiced consumers for these additional items, leading to follow-up invoices and potential referral to debt collection agencies for unpaid amounts.

Commissioner Liza Carver described the situation as a 'subscription trap,' where consumers believed they were making a one-time purchase but were instead signed up for a subscription. The ACCC's action pertains to misleading representations made between January 1, 2021, and June 26, 2023, across various print media.

The advertisements prominently featured images of single coins or ingots, often linked to historical themes, and stated a single price without disclosing the total cost of the entire collection. The ACCC emphasized the need for businesses to be transparent about subscription terms and total prices to allow consumers to make informed choices.

As a result of these practices, many consumers reportedly experienced distress and financial loss, having paid for items they did not intend to purchase. The ACCC is seeking penalties, declarations, injunctions, costs, and other orders against Bradford for these alleged violations.