Australian online retailer Kogan is operating a second website called Exclusive Brands to sell identical products at higher prices [1].
The discovery raises questions about the legitimacy of discounts offered on Kogan's primary platform. If a company controls two storefronts selling the same item at different price points, the "sale" price on one site may not represent a genuine market discount.
An investigation by the ABC found that Kogan manages the Exclusive Brands site as a separate entity [1]. This secondary platform lists popular products that are also available on Kogan.com, but the Exclusive Brands site lists them at higher prices [1].
This pricing strategy suggests that the discounts displayed on Kogan.com are measured against the inflated prices of the sister site rather than a standard market rate [1]. Such a practice could potentially mislead consumers into believing they are receiving a better deal than they actually are, a tactic that often draws scrutiny from consumer protection agencies.
Industry observers have pointed to the potential for regulatory intervention following these findings [1]. The Australian Competition and Consumer Commission (ACCC) typically monitors pricing transparency to ensure that retailers do not engage in deceptive conduct regarding price reductions [1].
Kogan has not provided a detailed public justification for the existence of the second site in the report [1]. The company continues to operate both platforms across Australia, maintaining the same inventory across both digital storefronts [1].
“Kogan is operating a second website called Exclusive Brands to sell identical products at higher prices.”
This situation highlights a potential loophole in digital retail where companies create 'phantom' competitors or sister sites to anchor high prices. By establishing a higher price point on a separate domain, a retailer can make the prices on their main site appear as significant discounts, even if those prices are standard. This may lead to an ACCC probe into whether Kogan's marketing violates Australian consumer law regarding misleading pricing.
