Discount code

Kogan fined $ 350,000 for cheating customers with discount code promotion

Online retailer Kogan has been fined $ 350,000 for misleading customers with a questionable tax cut.

The Federal Court ordered the fine on Monday after finding it had raised prices in anticipation of a four-day discount code.

He offered his customers a discount code “TAXTIME” to reduce all purchases by 10%.

However, the court found that before sending the code, it had raised prices by at least 10 percent, which meant any potential savings were a moot point.

According to the consumer watchdog, Kogan sent the discount codes during the 2018 tax reporting season to more than 10 million customers.

An example from the Kogan site during the supposed “sale”. Credit: ACCC

Text messages were also sent to nearly a million customers.

ACCC Chairman Rod Sims said the move sends a clear message to businesses not to distort their sales.

“In many cases, consumers who used the promo code to purchase these products paid as much or more than they would have paid before or after the promotion,” Sims said.

“Consumers weren’t getting a real 10% discount as promised, and this affected high-value products like Apple MacBooks, Samsung Galaxy cameras and mobile phones.”

Kogan has been sued for deceptive discount codes.
Kogan has been sued for deceptive discount codes. Credit: PAA

In her judgment, Judge Davies said: “Kogan’s misconduct must be regarded as serious.

“False claims about discounts offered on products not only harm buyers who purchase these products on the basis that they are getting a real discount, but can also impact consumer confidence in promotions from discount when legitimately made. “

In a statement acknowledging the fine imposed on ASX, Kogan said he is reviewing the decision and may remedy it in the future.

“At all times, the company has strived to make the most demanded products and services more affordable and accessible. “

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