No merger undertakings were accepted by the ACCC during February.
Enforcement undertakings
Australian Feather Mills Pty Ltd
Australian Feather Mills Pty Ltd, trading as AFM Downia, imports and wholesales 'Downia' brand quilts to Australian retailers.
ss. 52, 53(a) and 55. False and misleading representations in relation to the composition, nature and manufacturing process of goods
AFM Downia also supplies 'David Jones' brand quilts to David Jones Limited.
AFM Downia has acknowledged that the 100% down content claims that it previously made for its 'Downia' brand and 'David Jones' brand quilts were false and liable to mislead consumers in likely contravention of the Trade Practices Act 1974.
ACCC testing of a sample of Downia brand quilts represented to contain 100 per cent goose down or 100 per cent duck down showed that the quilts contained in the range of 80 per cent to 90 per cent down. ACCC testing of a David Jones brand quilt represented to contain 100 per cent goose down showed that the quilt contained 88 per cent goose down. AFM Downia advised the ACCC that its 100 per cent down content claims were made using the labelling composition limits specified in Australian Standard 2479–1987 ('Down and/or feather filling materials and filled products'), and that it had not intended to mislead or deceive consumers.
AFM Downia has undertaken to refrain in future from making any 100 per cent down content claims for the products it supplies.
AFM Downia has also undertaken to refrain in future from making any down content percentage claims for the products it supplies unless the claims can be substantiated by appropriate testing on its finished down products where the manufacturing process has been completed.
AFM Downia will implement a trade practices compliance program for AFM Downia employees and other persons involved in its business.
Tooltechnic Systems (Aust) Pty Ltd and Mr Holger Schulz
s. 48. Alleged resale price maintenance
On the 17 January 2007 the ACCC accepted court-enforceable undertakings from both Tooltechnic Systems (Aust) Pty Ltd and its Company Secretary and Managing Director, Mr Holger Schulz.
Tooltechnic is a wholesale supplier of power tools and/or power tool systems known by the brand ‘Festool’ or ‘Festo’ to hardware and power tool retailers throughout Australia.
Following an investigation, the ACCC has reached the view that Tooltechnic contravened s. 48 of the Trade Practices Act after two of its (now former) area managers, separately attempted on three occasions to induce two Festool retailers not to sell Festool products at less than prices specified by Tooltechnic.
Mr Holger Schulz is and was at all material times the Company Secretary and Managing Director of Tooltechnic. Mr Schulz acknowledges that certain of his conduct, together with deficient supervision and training of the area managers, may have contributed to the environment in which the alleged contraventions occurred.
Tooltechnic has provided court-enforceable undertakings to the ACCC that it will implement and maintain a trade practices compliance program. Mr Schulz has provided court-enforceable undertakings to the ACCC that he will not induce Tooltechnic, by its employees or otherwise, to make certain types of statements to retailers to the effect that they are not free to set their own retail prices.
On 30 January 2007 the ACCC also filed proceedings in the Federal Court in relation to this matter.
See related court enforceable undertaking: Tooltechnic Systems (Aust) Pty Ltd
