Advertising / Consumer Protection / Misleading Conduct

Craftmatic’s salespersons misled and unfairly pressured Senior Citizens

Craftmatic, which sells adjustable beds, has agreed to court declarations and injunctions against it relating to its door-to-door sales tactics with Senior Citizens.  Craftmatic admitted misleading and deceiving elderly consumers and unfairly pressuring them into purchasing a bed between 2005 and 2008.  Tactics included

* when initiating contact, stating that their purpose was not to sell them anything, but that they could win a free bed, when their sole interest was “to convince the consumer to agree to a presentation where the representative would try to make a sale”

* advising consumers the presentation would take no more than an hour when most took between two and three hours

* bringing cake or other gifts to a consumer’s home before asking questions.  Questions included health questions which consumers were told was to assist in determining an appropriate model of bed for their needs – in fact there was only one model of bed at the time

* where customers were reluctant to buy, offering discounts described as ‘special’ or ‘limited’ or only available that day when this was not the case.

* where the consumer said they could not afford to purchase a bed they would try to sell the bed on credit

and more …

See ACCC Press Release.

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