Conforama, a well-known furniture retailer, is currently embroiled in a legal battle in Switzerland over allegations of systematically misleading consumers with false pricing information. The Public Prosecutor's Office is pushing for millions in fines, claiming that the company engaged in deceptive practices that misled customers and distorted market competition.
Allegations of misleading pricing
The accusations against Conforama focus on the widespread use of "crossed-out prices" in their stores, catalogues, and online platforms. These prices, presented as discounts, are alleged to have never been offered to customers, thereby creating a false impression of savings. Additionally, Conforama is accused of making deceptive price comparisons with competitors, further misleading consumers about the value of their products.
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The legal proceedings
Conforama Switzerland is currently on trial at the Vaud Cantonal Court in Renens, facing charges of providing inaccurate pricing information to customers. The company, which operates 19 stores across Switzerland, denies any intentional wrongdoing, attributing the discrepancies to errors in their IT system.
The case has drawn significant attention, particularly after the Lausanne District Court issued a ruling in June that both parties found unsatisfactory. Conforama was initially fined 5,000 francs, a penalty deemed inadequate by both the consumer protection organisation Fédération Romande des Consommateurs (FRC) and the Public Prosecutor's Office. Both entities are now demanding a more severe penalty of 1.5 million francs.
In their defense, Conforama's legal team acknowledged that there were indeed errors and "bugs" in the pricing display system. However, they insisted that these mistakes were not intentional, but were instead the result of technical issues with the IT system in use at the time. The lawyers admitted that the company may have been "careless" but argued that there was no systematic or deliberate attempt to defraud customers.
While Conforama's lawyers did not dispute the imposition of a fine, they strongly opposed the demand for a 1.5 million franc penalty, calling it "completely disproportionate." They argued that there is no clear evidence linking the alleged deceptive pricing practices to an increase in the company's revenue.
Prosecutor Stephan Johner presented a starkly different view, accusing Conforama of "systematically cheating" over the years. He argued that the company's management was fully aware of the pricing issues but chose not to address them, instead opting to continue benefiting financially from the deceptive practices.
The court's decision is expected in the coming days, following an unsuccessful attempt to reach an out-of-court settlement.
Source: www.20min.ch