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Section 87B undertakings

Saint-Gobain Abrasives Pty Ltd

ss. 52, 53(a) and 53(eb) misleading or deceptive conduct, false representation and false or misleading representations concerning place of origin claims

2 March: undertaking given to the ACCC after acknowledging that six of the Norton Sanding discs for metal it sold to consumers as ‘Australian Made’ were not wholly or substantially the result of manufacturing processes carried out in Australia.

Saint-Gobain has undertaken to:

  • cease and refrain from making false and misleading statements
  • publish corrective notices
  • implement a corporate trade practices compliance program.

Snooza Pet Products (Aust) Pty Ltd

ss. 52, 53(a) and 55 misleading and deceptive conduct, false representations and misleading representations concerning the nature or characteristics of goods

2 March: undertaking given to the ACCC in relation to the incorrect labelling of the Pet Futon product as ‘100% Australian Wool’ and ‘all natural product’.

Testing of the products filling showed that it contained an average of 30 per cent wool before December 2004 and 50 per cent wool thereafter with the balance of the filling being polyester fibre.

Snooza has undertaken to:

  • refrain from making similar representations concerning this product in the future
  • offer a full refund of the purchase price of the product to buyers
  • implement a trade practices compliance program.

The Highlife Company (Aust) Pty Ltd

ss. 96 (3)(a) and (b) and 48 resale price maintenance

10 March: undertaking given to the ACCC acknowledging that letters written by the company to New South Wales dealers and resellers in relation to recommended retail prices and profit margins on CANNA Coco 50L products constituted resale price maintenance.

Highlife has provided court enforceable undertakings stating that it will not, in trade or commerce, engage in conduct of the following kind:

  • making it known to the dealers or resellers of Highlife’s products that Highlife will not supply CANNA Coco 50L products or any other products to those dealers of resellers unless the dealers or resellers agree not to resell those products at a price less than those specified by Highlife
  • inducing or attempting to induce dealers or resellers not to resell, at a price less than a price specified by Highlife, CANNA Coco 50L products or any other products supplied to dealers or resellers by Highlife
  • use a statement of price in relation to CANNA Coco 50L products or any other products supplied, or that may be supplied, by Highlife to dealers or resellers, that is likely to be understood by dealers or resellers as the price below which those products are not to be resold.

Highlife has also undertaken to:

  • write to its NSW CANNA dealers to explain the effect of its conduct
  • implement and maintain a trade practices compliance program.

Little Company of Mary Health Care Limited

s. 88(9) authorisation of proposed acquisition

10 March: undertaking given to the ACCC providing that Little Company of Mary Health Care (LCMHC) will not, and will ensure, that its subsidiaries and controlled entities will not, during the period of three years from the commencement date, sell the merged hospital to a for-profit operator.

LCMHC is a Catholic, not-for-profit health and aged care service provider with services in five states and territories.

In December 2004 LCMHC applied to the ACCC under s. 88(9) of the Trade Practices Act for authorisation of the proposed aquisition by its subsidiary, LCM Calvary Health Care Holdings Limited of St Vincent’s Hospital, Launceston.

Guthy-Renker Australia Pty Limited

ss. 52 and 53(c) misleading or deceptive conduct and false or misleading representations

11 March: undertaking given to the ACCC in relation to an infomercial advertising Motor Up ‘No Oil Change’ Engine Oil. Guthy-Renker has provided undertakings not to make representations that the oil:

  • prevents corrosion in engines
  • reduces engine wear and tear by up to 50 per cent
  • protects against engine wear even without motor oil.

The company has also undertaken to implement a trade practices compliance program and to write to the 130 people who bought the oil as a result of the television infomercial broadcast in May 2004, offering a refund of the full purchase price.

Dubbo Radio Cabs Co-Operative Limited

s. 45(2) anti-competitive practices

15 March: undertaking given to the ACCC in relation to the practice of allocating jobs in excess of 20 kms on a value basis in numerical order, least amount first; and acompany ban on drivers using mobile phones. In addition to ceasing these anti-competitive practices, Dubbo Radio Cabs Co-Operative Limited has provided undertakings to:

  • notify all taxi operators of the termination of the value based system for allocating jobs in excess of 20 kms
  • instruct a solicitor or suitably qualified person to review the rules and by-laws and remove all paragraphs that may be anti-competitive
  • develop a trade practices compliance program.
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