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Section 87B undertakings

Qantas Airways Limited

ss. 52, 53(e) and 53C misleading or deceptive conduct

20 November undertaking requiring the company to advertise the price of their airfares on an ‘all inclusive basis’.

A variation to this undertaking has been accepted by the ACCC as recent court decisions have made it clear that ‘all inclusive pricing’ is not required under the Act.

The variation requires Qantas, when making representations about the price of any airfare, to disclose the total price payable (the total fare) as a necessary precondition to receiving the represented services. The total fare may be a ‘single total fare’ or refer in dollar terms to all component amounts (whether individually specified or aggregated) that make up the ‘single total fare’, subject to certain conditions.


Harris Scarfe Australia Pty Ltd

ss. 52 and 53(e) misleading or deceptive conduct

3 November undertaking in relation to advertised sales promotions. In 2003 Harris Scarfe advertised sales promotions in its regular catalogues and made claims particularly relating to ‘save $X’ and ‘after the sale $X’.

In the case of some items an incorrect formula was used to calculate the alleged saving, and in others the item did not revert to a higher price as claimed, so the nature of the saving during the sale period was exaggerated.

Harris Scarfe admitted this may have misled consumers in breach of ss. 52 and 53(e) and published a public apology in nine newspapers in SA, VIC and TAS. The company also implemented a compliance program which was subject to external audit over three years.


Epic Energy (WA) Transmission Pty Ltd

s. 50 mergers or acquisitions which would have the effect or likely effect of substantially lessening competition in a substantial market for goods or services

1 November undertaking in connection with the sale of the Dampier to Bunbury natural gas pipeline to a consortium comprised of Alinta Limited, Alcoa of Australia Limited and Diversified Utility and Energy Trusts No. 1 and No. 2. The shares in Epic Energy (WA) Transmission Pty Ltd (EEWAT) were sold to the consortium members as part of the acquisition.

On 25 October 2004 the ACCC accepted an undertaking from the consortium members and other relevant parties (the principal undertaking). The principal undertaking included a commitment to obtain an undertaking from Epic Energy to comply with the terms of the principal undertaking relevant to EEWAT. This undertaking, accepted by the ACCC on 1 November 2004, was offered in accordance with that commitment.


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