Bunnings has been accused of ‘misleading’ its customers with its infamous promise to beat any competitor’s price on the same item by 10 per cent.
The hardware giant is one of the Australia’s most trusted brands, with more than 50,000 employees and 300 stores across the country.
But it has been accused of brutal marketing practices in an expose on ABC’s Four Corners show on Monday evening.
The show claims its famous vow to beat a competitor’s price if a customer can find a better deal elsewhere may not be as simple as it seems.
Several items in store that have the promise emblazoned on them are actually home-brand products, which are not stocked in other retailers.
In one example, Bunnings’ Citeco 0.9m 150kg ladder is priced at $115, and in a store visited by the ABC during their investigation, a sign hanging above it stated the 10 per cent price beat ‘guarantee’.
However, Citeco is Bunnings’ own brand and is manufactured for, and trademarked by the company.
Experts have said the price promise is therefore essentially meaningless for that product.
Bunnings has been accused of misleading customers by ABC’s Four Corners program (stock)
Bunnings vows to beat any competitor’s price on the same item by 10 per cent (stock image)
Competition lawyer and former chairman of Woolworths John Dahlsen told ABC: ‘I think it’s misleading. The 10 per cent beat thing is illusionary.’
Customers cannot easily see which brands like Citeco are owned by Bunnings in store, which stocks more than 9000 products.
The ownership of these brands is not visible on packaging, instore or online. It can only be confirmed through trademark registers or parent company, Wesfarmers’ annual report.
This includes Bunnings’ other home brands such as Jumbuck, Craftright, Marquee, Mondella, and Happy Tails.
Consumer group Choice has now called for greater transparency over the price guarantee.
Spokesman Matt Steen added: ‘Incorporation of some kind of labelling [identifying home brands] into their packaging and products would be really useful.’
Branding expert Camey O’Keefe told the program she believed the guarantee was just a marketing gimmick to give the idea customers were always getting the best price.
‘Bunnings uses a mix of owned brands and exclusive brands to differentiate our offer and give customers choice,’ a Bunnings spokesperson told Daily Mail Australia.
Bunnings has is one of Australia’s most trusted brands, with more than 50,000 employees and 300 stores across the country (stock)
‘But we do not use them to exclude operation of our lowest prices policy or as a reason to not apply our price guarantee.
‘Our lowest prices policy applies across like-for-like products and we reduce prices on our exclusive products where we identify a competitor’s similar product which may be at a lower price.
‘Bunnings does this to ensure its customers benefit from the best value in the market on ‘like for like’ items.’
The national chain – which is part of the firm which owns Kmart, Priceline, Target and Officeworks – added: ‘Bunnings complies with all legal and regulatory requirements.
‘Our registered trademarks are publicly available information. We are always seeking to provide the best value and shopping experience for our customers.
‘We are also a human organisation and recognise that from time to time we don’t always get it right.
‘However when we make a mistake, we work hard to put it right as soon as we are made aware.’
