20th May 2008 09:40
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64/08 |
20 May 2008 |
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SPORTSDIRECT.COM RETAIL LTD, HARGREAVES (SPORTS) LTD AND GILESPORTS PLC AGREE TO UNDERTAKINGS |
Following discussion with the OFT, Sportsdirect.com Retail Ltd (previous name: Sports World International Ltd), Hargreaves (Sports) Ltd and Gilesports plc have agreed to provide undertakings not to mislead consumers over any future 'closing down' promotions.
The OFT received complaints that certain shops owned by the companies were displaying 'closing down' advertisements in their shop windows for several months, however some of the shops in question did not close or they closed temporarily for a very short period of time for refurbishment.
The OFT considered the advertisements to be in breach of the Control of Misleading Advertisements Regulations 1988 (the CMARs). In the opinion of the OFT the advertisements created the incorrect impression that the shop in question was to close permanently and as a result of the imminent closure the consumer only had a short period of time to purchase the goods and / or that only a limited amount of stock was available.
The companies have discussed the position with the OFT and whilst the companies did not consider that their advertisements were misleading under the CMARs, they have already responded positively to the OFT's concerns by making their advertising clearer and have agreed to give undertakings.
In particular, the companies have provided the OFT with undertakings that they will refrain from publishing any advertisements which give the impression that as a result of an intended store closure consumers only have a limited amount of time to purchase goods and/or that only a limited amount of goods are available, when this is not in fact the case. In addition, if the stores are to close temporarily then the reason for closure and the intended dates of closure will be clearly advertised.
Mike Haley, OFT Director of Consumer Protection, said:
'Consumers searching for bargains should not be misled by claims about closing down promotions. It is important that advertising accurately reflects traders intentions to close business premises, and we therefore welcome the positive response from Sportsdirect.com Retail, Hargreaves and Gilesports.'
NOTES
1. The undertakings from Sportsdirect.com Retail Ltd (previous name: Sports World International Ltd), Hargreaves (Sports) Ltd and Gilesports plc were signed on 6 May 2008.
2. The registered office for Sportsdirect.com Retail Ltd, Gilesports plc and Hargreaves (Sports) Ltd is: Unit A, Brook Park East, Shirebrook, NG20 8RY .
3. Sportsdirect.com Retail Ltd, Gilesports plc and Hargreaves (Sports) Ltd are direct or indirect subsidiaries of Sports Direct International plc.
4. The directors, David Forsey and Robert Mellors, have signed the undertakings on behalf of Sportsdirect.com Retail Ltd, Gilesports plc and Hargreaves (Sports) Ltd.
5. Part 8 of the Enterprise Act 2002 came into force on 20 June 2003. The Enterprise Act improves consumer protection by giving enforcers increased powers to obtain court orders against traders that breach a range of consumer legislation controlling activities such as misleading advertising.
6. The Control of Misleading Advertisements Regulations 1988 (‘the CMARs’) largely implement EU Directives on misleading and comparative advertising. To come within the scope of the CMARs, an advertisement must be misleading (that is it must deceive or be likely to deceive the recipient and affect their economic behaviour, or for those reasons harm the interests of a competitor), and be published, in connection with a trade, business, craft or profession, in order to promote the supply or transfer of goods or services, immovable property, rights or obligations. The OFT can take action against anyone appearing to be concerned or likely to be concerned with the publication of a misleading advertisement.
7. Only a court can decide that an advertisement is misleading under the CMARs. It has not done so here.
8. The CMARs are to be replaced by the Consumer Protection from Unfair Trading Regulations 2008 (‘the CPRs’), scheduled to come into force on 26 May. The CPRs implement the EU’s Unfair Commercial Practices Directive (2005/29/EC) (the UCPD) into UK law.
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