DigiDirect Fined $99,000 over Misleading Online Discounts

Electronics retailer Digital Imaging Express, trading as DigiDirect, has paid a $99,000 fine after the Australian Competition and Consumer Commission investigated misleading online advertising.

The retailer agreed to a three-year undertaking under ACCC oversight after promoting fake strikethrough discounts across products that were never sold at higher rates.

How the Strikethrough Pricing Worked

Investigators found listings claiming slashed prices for items that never existed on the site at those baseline figures. In one case, a mini wireless keyboard appeared for $149 beside a strikethrough price of $229. DigiDirect had never charged that higher amount.

The watchdog determined the practice breached Australian Consumer Law through false savings claims. Digital Imaging Express then signed a section 87B court-enforceable undertaking. The agreement places the retailer under regulatory oversight for three years.

DigiDirect’s advertising may have misled consumers into thinking they were getting a genuine discount when in reality the products were rarely advertised and almost never sold at the higher strikethrough price, and the suggested discount was illusory.

Conditions of the Regulatory Settlement

Beyond the $99,000 fine, the settlement forces DigiDirect to pull the listings immediately. It must also publish a corrective notice to shoppers on its website.

ACCC deputy chair Mick Keogh said deceptive discounts distort consumer behaviour and stop shoppers from comparing prices across competitors. Buyers assume they found a bargain and stop checking elsewhere.

Enforcement Pressure Across Digital Retail

Online operators across the region face strict auditing over promotional pricing. E-commerce platforms rely heavily on strikethrough deals. However, automated systems that invent artificial baselines carry legal exposure under consumer protection laws.

Marketplace sellers now face scrutiny over automated sale banners. Internal compliance teams must prove reference prices reflect actual sales history rather than supplier lists or inflated baselines.

Consolidation and Revenue Goals

Enforcement comes as DigiDirect pushes into wider consumer goods categories. The retailer operates an omnichannel model across its digital store and seven physical shops.

Its parent group is chasing $500 million in annual retail revenue. That portfolio includes DigiDirect, Mwave, and recently acquired book assets Booktopia, Angus & Robertson, and James Bennett.