From around January 2001 until August 2003, Daikin Australia Pty Ltd, a company which imports and distributes airconditioning units, made the following representations in brochures distributed to its sales agents and on its website:
the hydrofluorocarbon (HFC) refrigerants HFC–407C and HFC–134a are environmentally friendly
certain Daikin airconditioning units using the HFC refrigerants HFC–407C and HFC–134a are environmentally friendly
the use by consumers of certain Daikin airconditioning units which use HFC–407C and HFC–134a will be beneficial to the environment or at worst be benign so far as its environmental impact is concerned and
the use by consumers of certain Daikin airconditioning units which use HFC–407C and HFC–134a will prevent or at least not contribute to global warming
(together the Representations).
Following receipt of expert scientific advice, the ACCC considered that the above Representations were misleading in contravention of ss. 52, 53(c) and 55 of the Trade Practices Act 1974 in that the refrigerants HFC–407C and HFC–134a are potent greenhouse gases and therefore will not benefit the environment and will contribute to global warming.
Daikin Australia Pty Ltd has given court–enforceable undertakings pursuant to s87B of the TPA that it will:
not make the Representations for a period of five years
place corrective advertisements on its website
write and distribute letters explaining the undertaking to Daikin's distributors and to the Australian Airconditioning and Refrigeration Equipment Manufacturers Association and
review its existing trade practices compliance program and ensure provision of training in respect of environmental claims for sales and marketing staff and company officers responsible for compliance
