An ABC News investigation has raised questions about Kogan’s pricing practices after revealing the online retailer is operating its lesser-known website, Exclusive Brands, to sell many of same products at significantly higher prices.
The ABC reported that Kogan.com advertised discounts against what it described as a standard retail price, while the same products were listed at substantially higher prices on Exclusive Brands. The investigation raised questions about whether those higher prices were being used as the basis for the advertised discounts. The ABC’s analysis of more than 1,000 products found the median price difference between the two websites was around $100.
The findings have prompted calls for the Australian Competition and Consumer Commission (ACCC) to investigate whether the pricing comparisons could mislead consumers. Former ACCC chair Rod Sims told the ABC the use of the secondary website warranted “a very close look”, while University of Melbourne consumer law expert Jeannie Paterson said the arrangement appeared “really murky” and supported further scrutiny.
Kogan denied any wrongdoing, telling the ABC its pricing and discount methodologies comply with Australian consumer law and are reviewed by independent external lawyers. The company said standard retail prices are only advertised where products have been offered at those prices on Kogan.com for a reasonable period and may also apply across other Kogan Group sales channels.
“Kogan.com only advertises an SRP as a reference price where that price has been offered on Kogan.com itself for a reasonable time and within a recent period of time,” a Kogan spokesperson told the ABC.
“Standard Retail Pricing may also apply to the same product on other Kogan Group channels.”
The ACCC declined to comment on whether it would investigate the matter but reiterated that businesses must not make false or misleading claims about prices, savings or discounts.
