ACCC institutes against Phoneflasher.com Pty Ltd over mobile phone accessory

The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Adelaide, against Phoneflasher.com Pty Ltd, a company that supplies a mobile phone accessory which claims to reduce radiation and to therefore have associated health benefits.

The ACCC has also instituted proceedings against two representatives of Phoneflasher.com, Jimeale Jorgensen and Alan Jorgensen.

The ACCC alleges that Phoneflasher.com made false and misleading representations concerning the performance characteristics of its Phoneflasher mobile phone accessory on packaging, displays, in promotional material and on its website.  Specifically, Phoneflasher.com represented that the product 'reduces radiation' as well as making a claim on its website that the product has 'significant health benefits'.

The ACCC alleges that the representations are false and misleading in breach of section 52 of the Trade Practices Act 1974 because the product does not work as claimed and Phoneflasher.com has no reasonable basis for making the claims.  Under section 51A of the Act if a company makes a representation as to a future matter it must have a reasonable basis for making the claims. 

The ACCC is seeking court orders including:

• declarations
• corrective advertisements
• injunctions
• findings of fact and
• costs.

The matter has been listed for a directions hearing in the Federal Court, Adelaide, on Tuesday, 20 July 2004.