No merger undertakings were accepted by the ACCC over this reporting period.
Enforcement undertakings
Adairs The House of Linen (Aust) Pty Ltd
ss. 52, 53(a) and 55. False and misleading representations in relation to the composition and nature of goods
The ACCC accepted a court enforceable undertaking from Adairs on 8 November 2006. This undertaking was on the ACCC’s confidential register while the investigation into the industry was finalised.
Adairs supplies 'Downtime' brand down quilts in its retail stores in Australia. Adairs has acknowledged that the 100% down content claims it made for its ' Downtime ' brand quilts may have been false and liable to mislead consumers.
ACCC testing of two 'Downtime' brand down quilts showed that the quilts contained in the range of 70% to 86% goose down, significantly less goose down than the represented 100%.
Adairs advised the ACCC that the 100% down content claims it made for its 'Downtime' brand quilts were made in reliance on the labelling percentage tolerances allowed in Australian Standard (AS) 2479–1987 ('Down and/or feather filling materials and filled products'), and that it had not intended to mislead or deceive consumers.
Adairs has undertaken:
not to promote that any of its own-brand products contain 100% down, given that normal commercial manufacturing processes are very unlikely to achieve this percentage of down content
and to:
refrain in future from making any down content claim for its own-brand down products unless the claim can be substantiated by independent testing on its finished down products where the manufacturing process has been completed
ss. 52, 53(a) and 55. False and misleading representations in relation to the composition and nature of goods
The ACCC accepted a court enforceable undertaking from Domayne on 14 January 2007.
Domayne supplies 'Domayne Essentials' brand down quilts in its retail stores in Australia. Domayne has acknowledged that the 100% and 95% duck down content claims it made for its 'Domayne Essentials' brand quilts were false and liable to mislead consumers. ACCC testing of a sample of Domayne Essentials' brand quilts represented to contain either 100% or 95% duck down, showed that the quilts contained in the range of 70% to 75% duck down, significantly less than the represented percentages.
Domayne has undertaken:
not to promote that any of its own-brand products contain 100% or 95% down, given that normal commercial manufacturing processes are very unlikely to achieve these percentages of down content
not to make any other down content percentage representations which include any percentage tolerance or allowance
and to:
refrain from making any down content claims unless the claims can be substantiated by independent testing on its finished down products where the manufacturing process has been completed
s. 65C. Alleged supply of goods in breach of mandatory consumer product safety standards
The ACCC accepted a court enforceable undertaking from Eternal Design on 14 January 2007.
Eternal Design Pty Ltd distributed to retailers 94 bunk beds under the description ‘Fantasy Bus’ which did not comply with the mandatory product safety standard for bunk beds.
The bunk bed failed to comply with the Australia/New Zealand bunk bed standard because of potentially hazardous gaps in the construction of the bunk bed and a guard rail with an opening that was too wide.
Eternal design has undertaken that it will:
refrain from supplying any bunk beds that do not comply with the mandatory consumer product safety standard
undertake a recall or modification of the bunk beds to ensure they meet the standard
write to consumers who have purchased the bunk bed
s. 65C. Alleged supply of goods in breach of mandatory consumer product safety standards
The ACCC accepted a court enforceable undertaking from Furniture Galore on 10 January 2007.
Furniture Galore Pty Ltd sold 13 bunk beds to consumers under the description ‘Fantasy Bus’ which did not comply with the mandatory product safety standard for bunk beds. The bunk bed failed to comply with the Australian and New Zealand bunk bed standard because of potentially hazardous gaps in the construction of the bunk bed and a guard rail with an opening that was too wide.
Furniture Galore has undertaken that it will:
refrain from supplying any bunk beds that do not comply with the mandatory consumer product safety standard
ss. 52, 53(a) and 55. False and misleading representations in relation to the composition and nature of goods
The ACCC accepted a court enforceable undertaking from Harris Scarfe on 4 September 2006. This undertaking was on the ACCC’s confidential register while the investigation into the industry was finalised.
Harris Scarfe represented to consumers that its ‘Home Statements Signature Collection’ quilts contained 100% goose down.
ACCC testing showed that the quilt contained significantly less goose down than the represented 100%. The ‘Home Statements Signature Collection’ quilt was calculated to contain 73% goose down with an additional 1.8% duck down.
Harris Scarfe advised the ACCC that its 100% down content claims were made in reliance on its down content specifications to its overseas supplier and on labelling percentage tolerances allowed under AS 2479–1987 ('Down and/or feather filling materials and filled products'), and that it had not intended to mislead or deceive consumers.
Harris Scarfe has undertaken:
not to promote that any of its own-brand products contain 100% down, given that normal commercial manufacturing processes are very unlikely to achieve this percentage of down content
not to make any other down content percentage representations which include any percentage tolerance or allowance
not to make any down content percentage representations that it cannot substantiate by way of testing of a representative sample of its finished down products by International Down and Feather Bureau (IDFB)-approved testing methods for down and feather products
and to:
offer refunds
publish corrective notices
amend its existing trade practices compliance program.
ss. 52, 53(a) and 55. False and misleading representations in relation to the composition and nature of goods
The ACCC accepted a court enforceable undertaking from Home Express on 19 September 2006. This undertaking was on the ACCC’s confidential register while the investigation into the industry was finalised.
Home Express, importer and retailer of 'Home Express' brand quilts, has acknowledged that it misrepresented to consumers that its 'Home Express' brand quilts contained 100% goose down. ACCC testing showed that the quilts contained in the range of 72% to 85% goose down, significantly less goose down than the represented 100%.
Home Express advised the ACCC that its 100% down content claims were made in reliance on the labelling percentage tolerances allowed in AS 2479–1987 ('Down and/or feather filling materials and filled products'), and that it had not intended to mislead or deceive consumers.
Home Express has undertaken:
not to promote that any of its own-brand products contain 100% down, given that normal commercial manufacturing processes are very unlikely to achieve this percentage of down content
not to make any other down content percentage representations which include any percentage tolerance or allowance
and to:
refrain in future from making any down content claim for its own-brand down products unless the claim can be substantiated by independent testing on its finished down products where the manufacturing process has been completed
ss. 52, 53(a) and 53(e). Alleged misleading or deceptive conduct; falsely represent that goods are of a particular standard, quality, value, grade, composition, style or model or have had a particular history or particular previous use and make a false or misleading representation with respect to the price of goods or services
The ACCC accepted a court enforceable undertaking from JB Hi-Fi on 5 December 2006.
The ACCC was concerned about aspects of comparative or two-price advertising by home entertainment retailer JB Hi-Fi Group in a catalogue distributed in February/March 2006. The catalogue included 45 home entertainment products advertised at a discount represented as the saving of a nominated sum off each product's recommended retail price.
The ACCC felt consumers may have believed that JB Hi-Fi, or its relevant market competitors, had, within a reasonable time before the catalogue's issue, sold the products in reasonable quantities at the recommended retail price. This may not in fact have been the case. If so, the ACCC was concerned that the catalogue may have contained false or misleading representations.
JB Hi-Fi believes it was entitled to make the representations but has acknowledged the ACCC's concerns. In the undertaking, which was given on a without admissions basis, JB Hi-Fi has agreed that it will:
not advertise any product with a discount from its recommended retail price unless the product was advertised and sold at that price in the same markets, in reasonable quantities for a reasonable period of time and within a reasonable period of the date of the advertising
implement a trade practices law compliance program.
ss. 52, 53(a) and 55. False and misleading representations in relation to the composition and nature of goods
The ACCC accepted a court enforceable undertaking from Linen House on 25 July 2006. This undertaking was on the ACCC’s confidential register while the investigation into the industry was finalised.
Linen House represented to consumers that its ‘Linen House’ quilts contained 100% goose down. ACCC and Linen House testing showed that the quilts contained in the range of 50% to 55% goose down, substantially less than the represented 100% goose down.
Linen House advised the ACCC that its 100% down content claims were made in reliance on incorrect test reports provided by its overseas supplier and on labelling percentage tolerances allowed under the AS 2479–1987 ('Down and/or feather filling materials and filled products'), and that it had not intended to mislead or deceive consumers.
Linen House has undertaken:
not to promote that any of its products contain 100% down
not to make any other down content percentage representations which include any percentage tolerance or allowance
not to make any down content percentage representations that it cannot substantiate by way of testing of its finished down products in accordance with the testing method specified in AS 2479–1987 or IDFB-approved testing methods
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
The ACCC accepted a court enforceable undertaking from Merja Pty Ltd on 17 January 2007.
Western Australian bicycle retailer, Merja Pty Ltd, trading as Morley Cycles, has admitted it misrepresented potential savings available to consumers when advertising the sale prices of its bicycles.
In an eight-page colour catalogue, Morley Cycles advertised the sale of a number of different styles of ‘Mongoose’ and ‘Gemini’ bicycles at specified prices. The catalogue advertised a ‘Was’ price and a lower sale price for the bicycles. The ACCC was concerned that Morley Cycles had advertised the ‘Was’ price when it had not sold any bicycles at the higher price.
Merja has undertaken:
not to make 'was' pricing representations unless the 'Was' price was the usual price at which the item was sold in the previous three months
and to:
publish corrective notices
provide trade practices compliance training for staff
implement a corporate complaints handling system.
See related court enforceable undertaking: Merja Pty Ltd
The ACCC accepted a court enforceable undertaking from Optima Technology Solutions on 5 December 2006.
Optima Technology Solutions, the national supplier of Optima computer products, admitted to the ACCC that it had engaged in resale price maintenance. In response to an ACCC investigation into a complaint, Optima admitted it had told two of its dealers they should stop discounting and raise their prices for Optima computers to Optima's recommended retail prices. The dealers were threatened with having the supply of Optima products withheld or their dealership cancelled.
Optima has undertaken:
not to engage in resale price maintenance
and to:
implement a trade practices compliance program
implement an audit process to determine whether any other Optima dealers have been subjected to resale price maintenance
write to all Optima dealers to advise them: – of the outcome of the ACCC's investigation – of their freedom to set their own prices for Optima products – that they should not place pressure on other dealers who offer discounted prices on Optima products – that they should not seek to induce Optima to take action against dealers who offer discounted prices.
ss. 52, 53(a) and 55. False and misleading representations in relation to the composition and nature of goods
The ACCC accepted a court enforceable undertaking from Pillow Talk Pty Ltd on 14 January 2007.
Pillow Talk Pty Ltd, importer and retailer of 'Pillow Talk' brand quilts, has acknowledged that the 100% goose down content claims it made for its 'Pillow Talk' brand quilts were false and liable to mislead consumers in likely contravention of the TPA.
ACCC testing of a sample of 'Pillow Talk' brand quilts represented to contain 100% goose down showed that the quilts contained in the range of 71% to 76% goose down, significantly less goose down than the represented 100%.
Pillow Talk advised the ACCC that its 100% goose down content claims were made in reliance on the labelling percentage tolerances allowed in AS 2479–1987 ('Down and/or feather filling materials and filled products'), and that it had not intended to mislead or deceive consumers.
Pillow Talk has undertaken:
not to promote that any of its products contain 100% down
not to make any other down content percentage representations that include any percentage tolerance or allowance
and to:
refrain in future from making any down content claims unless the claims can be substantiated by independent testing on its finished down products where the manufacturing process has been completed
ss. 52, 53(a) and 55. False and misleading representations in relation to the composition and nature of goods
The ACCC accepted a court enforceable undertaking from Purax Feather Holdings on 26 October 2006. This undertaking was on the ACCC’s confidential register while the investigation into the industry was finalised.
Purax Feather Holdings, supplier of 'Puradown' and 'White Eider' brand quilts, has acknowledged that the 100% down content claims it made for its quilts were false and liable to mislead consumers.
ACCC testing of a Purax ‘White Eider’ brand quilt showed that it contained approximately 85% goose down, significantly less goose down than the represented 100%.
Purax advised the ACCC that its 100% down content claims complied with the labelling percentage tolerances allowed in AS 2479–1987 ('Down and/or feather filling materials and filled products'), and that it had not intended to mislead or deceive consumers.
Purax has undertaken:
not to promote that any of its products contain 100% down
not to make any other down content percentage representations which include any percentage tolerance or allowance
and to:
refrain in future from making any down content claims for its quilts unless the claims can be substantiated by independent testing on its finished down product where the manufacturing process has been completed
ss. 52, 53(a) and 55. False and misleading representations in relation to the composition and nature of goods
The ACCC accepted a court enforceable undertaking from Sheridan on 12 July 2006. This undertaking was on the ACCC’s confidential register while the investigation into the industry was finalised.
Sheridan represented to consumers that its ‘Sheridan Ultradown’ quilts contained 100% goose down. ACCC testing showed that the quilts contained in the range of 80% to 85% goose down, significantly less than the represented 100% goose down.
Sheridan advised the ACCC that its 100% down content claims were made in reliance on test reports provided by its overseas supplier and on labelling percentage tolerances allowed under AS 2479–1987 ('Down and/or feather filling materials and filled products'), and that it had not intended to mislead or deceive consumers.
Sheridan has undertaken:
not to promote that any of its products contain 100% down
not to make any other down content percentage representations which include any percentage tolerance or allowance
not to make any down content percentage representations that it cannot substantiate by way of testing of its finished down products in accordance with the testing method specified in AS–2479 or IDFB-approved testing methods
and to:
publish corrective notices
revise its existing trade practices compliance program.
ss. 52, 53(a) and 55. False and misleading representations in relation to the composition and nature of goods
The ACCC accepted a court enforceable undertaking from Target on 14 June 2006. This undertaking was on the ACCC’s confidential register while the investigation into the industry was finalised.
Target represented to consumers that its own-brand ‘Target Four Seasons’ goose down quilts contained 100% goose down.
ACCC testing showed that a Target double quilt contained significantly less goose down than the represented 100%. The quilt was calculated to contain respectively 68.9% goose down and 69.5% goose down.
Target advised the ACCC that its 100% down content claims were made in reliance on its supplier’s test reports and on labelling percentage tolerances allowed under AS 2479–1987 ('Down and/or feather filling materials and filled products'), and that it had not intended to mislead or deceive consumers.
Target has undertaken:
not to promote that any of its own-brand products contain 100% down, unless it can be verified that this percentage of down content has been achieved
not to make any other down content percentage representations which include any percentage tolerance or allowance
not to make any down content percentage representations that it cannot substantiate by way of testing of its finished down products by IDFB-approved testing methods
and to:
publish corrective notices
offer refunds
revise its existing trade practices compliance program.
