OFT warns Sports Direct International over ‘closing down’ promotions
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.’
