Court finds jewellery chain Zamel’s misled consumers about sales: Midday roundup

The Federal Court has found the Zamel’s chain of jewellery stores, misled consumers about the savings to be made during sales.

The court found that Zamel’s misrepresented the savings consumers would make from purchasing items during sale periods in respect of 44 jewellery items where Zamel’s had either not sold the items at the higher price quoted in the sale, or had rarely sold them.

Australian Competition and Consumer Commission chairman Rod Sims said the court’s decision sends a clear message to businesses big and small, in all areas of retailing.

“It is unlawful to use this kind of advertising and represent that consumers would make savings during a sale when the savings claimed are not real,” Sims said.

ANZ profits up to $4.5 billion

ANZ has lifted its cash profits in the nine months to June to $4.5 billion, 5.5% higher than the previous corresponding period.

Net profit lifted 10.3% to $4.4 billion.

ANZ chief executive officer Mike Smith said ANZ was continuing to benefit from its super regional strategy, with a solid performance consistent with its half-year outlook.

“We have managed ongoing funding and competitive pressures well, with group margins stable relative to the end of the first half,” he said.

Australian sharemarket opens higher

The Australian sharemarket has opened higher following continued gains in Wall Street after strong economic data out of the US.

At the official market open, the benchmark S&P/ASX 200 index gained 0.09% t to 4333.9 points and the broader All Ordinaries Index lifted 0.09% to 4357.6 points.

Treasury warns government on spending promises

The Treasury has warned the Federal Government its list of spending promises may need to be funded by spending cuts, according to The Australian Financial Review.

Treasury secretary Martin Parkinson said, according to the publication, that global volatility will continue and this will make it hard to fund expensive policies without cuts.

“The take-out message is that the days of the large surpluses being delivered by buoyant tax receipts are behind us,” he told the AFR. “With hindsight, it is apparent that part of revenue collections then reflected a temporary bubble in the economy.”