In the period immediately before the introduction of Goods and Services Tax in July 2000, national catalogue, television and radio advertising was conducted for Harvey Norman Computers & Communications stores which featured a promotion for GST-ready accounting software, Quicken Quickbooks, for $199 that included a bonus software bundle valued at over $900. The same advertising also contained representations in relation to the eligibility for GST-related taxation benefits on purchases of digital cameras and "approval" of digital cameras for GST Start-Up Assistance from the Federal Government.
The ACCC considered that the Quicken Quickbooks promotion was advertised when Harvey Norman was aware that quantities of the bonus software were insufficient to meet consumer demand in contravention of sections 52 and 56 of the TPA. The ACCC also considered the representations in relation to digital cameras to be misleading in contravention of section 52 of the TPA.
Harvey Norman Holdings Limited has given court-enforceable undertakings in relation to its trade practices compliance program that it will:
for a period of 3 years, maintain and regularly review its compliance program;
within 28 days, retain an independent compliance practitioner for the purpose of reviewing and further developing its compliance program; and
arrange for an independent audit of its compliance program to be undertaken annually for a period of 3 years.
