Six Harvey Norman franchisees have each paid $6,000 in infringement notices for advertising a video camera that they did not stock.
The Australian Competition and Consumer Commission (ACCC) issued the west Australian-based stores with infringement notices after the franchisees advertised the Kodak 'Playsport' pocket video camera in a catalogue when they were unable to supply the product to consumers.
ACCC chairman Graeme Samuel said businesses have to be careful when advertising their products via catalogues.
"Promotional material must be accurate and there must be adequate stock of the advertised product to meet reasonable demand, otherwise businesses risk bait advertising which is illegal," he said.
"Infringement notices increase the remedies available to the ACCC to quickly address this type of conduct and promote compliance with the law."