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Section 87B undertakings

Baby Dynamics

s. 65C. Mandatory product safety standards.

On 10 May 2006 Baby Dynamics Pty Ltd gave an undertaking to the ACCC that it will:

  • recall any non-compliant baby walkers purchased by consumers
  • cease supply of the baby walkers until labelled in accordance with the Standard
  • arrange for an article alerting consumers to the existence and importance of safety standards for baby products to appear in a parenting magazine
  • implement a trade practices compliance program.

Baby Dynamics Pty Ltd distributed about 280 baby walkers under the description '3 in 1 Walker'. These baby walkers did not comply with the Baby Walkers Standard. The Standard requires that baby walkers are labelled with warning instructions addressing risks associated with using the product. No warning labels were affixed to the 3 in 1 Walkers.

See related ACCC news release of 11 May 2006: Baby Dynamics' baby walkers fail mandatory safety standard

See related 87B court enforceable undertaking: Baby Dynamics Pty Ltd

CGS Trading Australia Pty Ltd

ss. 52, 53(a), 55. Alleged misleading or deceptive conduct; false or misleading representations that goods are of a particular standard, quality, value, grade, composition, style or model or have had a particular history or particular previous use; mislead the public as to the nature, the manufacturing process, the characteristics, the suitability for their purpose or the quantity of any goods.

On 16 May 2006 CGS Trading Australia Pty Ltd gave an undertaking to the ACCC that it will:

  • refrain from supplying or offering to supply socks in the future that carry false or misleading fibre content labelling and/or any other representations contrary to Part V of the Trade Practices Act, particularly ss. 52, 53(a) and 55
  • implement a trade practices corporate compliance program for CGS employees and other persons involved in its business.

CGS Trading Australia Pty Ltd (CGS), importer, distributor and supplier of 'Aussiesox' branded socks has admitted to incorrectly labelling some of its socks. CGS represented a range of socks as ‘Pure Cotton’ when they were not composed entirely of cotton. CGS also represented that a range of its ‘Cotton Rich’ socks was composed of 98 or 95 per cent cotton when they were composed of no more than 84.4 per cent cotton.

See related ACCC news release of 22 May 2006: ACCC accepts court enforceable undertakings from sock importer, distributor and company director

See related 87B court enforceable undertaking: CGS Trading Australia Pty Ltd

Mr Won Mo Yoon

ss. 52, 53(a), 55. Alleged misleading or deceptive conduct; false or misleading representations that goods are of a particular standard, quality, value, grade, composition, style or model or have had a particular history or particular previous use; mislead the public as to the nature, the manufacturing process, the characteristics, the suitability for their purpose or the quantity of any goods.

On 16 May 2006 Mr Won Mo Yoon provided court enforceable undertakings to the ACCC that, in his capacity as a director or office holder of any corporate entity he is involved with, he will:

  • refrain from supplying or offering to supply socks in the future that carry false or misleading fibre content labelling and/or any other representations contrary to Part V of the Trade Practices Act, particularly ss. 52, 53(a) and 55
  • ensure that these corporate entities establish a trade practices corporate compliance program.

Mr Won Mo Yoon, director of CGS Trading Australia Pty Ltd (CGS), admitted that CGS, the importer, distributor and supplier of 'Aussiesox' branded socks represented a range of socks as ‘Pure Cotton’ when they were not composed entirely of cotton and represented that a range of its ‘Cotton Rich’ socks was composed of 98 or 95 per cent cotton when they were composed of no more than 84.4 per cent cotton. Mr Won Mo Yoon acknowledges that he was knowingly concerned in contraventions of the Trade Practices Act in relation to the sale of Aussiesox socks.

See related ACCC news release of 22 May 2006: ACCC accepts court enforceable undertakings from sock importer, distributor and company director

See related 87B court enforceable undertaking: Mr Won Mo Yoon

Northern Rivers Gestalt Institute Incorporated

s. 45. Contracts, arrangements or understandings that restrict dealings or affect competition.

On 24 May 2006 Northern Rivers Gestalt Institute Incorporated gave an undertaking to the ACCC that it will:

  • not enter into, or attempt to enter into, any agreements with its competitors about the prices to be charged for the provision of Gestalt training services
  • write to all the parties who received the email in which the attempted price fix was communicated to retract its contents
  • implement a trade practices compliance program in which the director of the Northern Rivers Gestalt Institute who sent the email will attend trade practices compliance training.

The Northern Rivers Gestalt Institute Incorporated offers courses in 'Gestalt' counselling. In late 2005 Steven Gunther, a director of Northern Rivers Gestalt Institute Incorporated, sent an email to the directors of eight other Gestalt institutes seeking their agreement to collectively raise fees in contravention of s. 45 of the Trade Practices Act, which prohibits price fixing.

See related ACCC news release of 30 May 2006: ACCC accepts court enforceable undertakings from Gestalt Institute over attempted price fix

See related 87B court enforceable undertaking: Northern Rivers Gestalt Institute Incorporated

Southern Motors Pty Ltd trading as Jason Mazda

ss. 52 and 53(e). Alleged misleading or deceptive conduct and making a false or misleading representation with respect to the price of goods or services.

On 15 May 2006 Southern Motors Pty Ltd gave an undertaking to the ACCC that it will:

  • disclose any dealer delivery fees that are payable and which have not already been included in the advertised price in all future advertisements and marketing
  • publish a corrective notice in the Western Suburbs Weekly Community Newspaper advising consumers of the omission in its previous advertisement
  • strengthen its existing corporate trade practices law compliance program to ensure similar potential breaches of the Trade Practices Act do not occur in the future.

The ACCC was concerned that Jason Mazda made price representations that did not state that dealer delivery charges were applicable to the advertised prices of various Mazda vehicles when such charges did apply.

See related ACCC news release of 19 May 2006: Car dealer fails to include all charges in advertisement

See related 87B court enforceable undertaking: Southern Motors Pty Ltd

 

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