Resumé business gives undertakings over home-based business claims

Burnan Pty Ltd, trading as Resumé Service and a director, Mr Keith Rolston, have given court-enforceable undertakings in relation to claims made in the sale and promotion of its resumé service process that could be operated as a home-based business opportunity.

The Australian Competition and Consumer Commission was concerned that Burnan and Mr Rolston may have breached the Trade Practices Act 1974 by making false or misleading representations about the business opportunity. These included claims about the demand for the services and their profitability, when there may not have been reasonable grounds to support those claims.

"This matter highlights the need for businesses to be careful when creating their advertising and promotional material to ensure that they can support any claims made about the goods or services", ACCC Chairman, Mr Graeme Samuel, said today.

"People buying or starting a new business should consider our easy reference guide, Trade practices start-up checklist for small business*.  The checklist covers key things to consider before signing any contracts".

Burnan acknowledged the ACCC's concerns that the conduct placed Burnan at risk of contravening the Act. To address these concerns Burnan has provided court-enforceable undertakings that it will:

• cease making representations that prospective purchasers of the business opportunities will begin earning a specified amount per day after training is completed,
• review all of its advertising and selling practices to ensure that any representations concerning demand for resumé services, and current and future profitability, are not misleading and/or deceptive and are made with reasonable grounds,
• implement procedures in relation to future purchasers of the business opportunity obtaining independent legal or financial advice, and
• establish a trade practices law compliance program.