ss. 52 and 53(c). Alleged misleading or deceptive conduct and false or misleading representations
An upgraded court enforceable undertaking by insulation batt manufacturer Auspoly Pty Ltd has been accepted by the ACCC.
The ACCC had continuing concerns about the insulation rating (R value) of a range of Auspoly polyester insulation batts which were lower than the R value stated on the batt packaging.
Auspoly offered the ACCC an original undertaking in May 2005 after concerns were raised about a stated R Value that was higher than that indicated when tested against the relevant industry standard, Australian/New Zealand Standard 4859.1.
Auspoly has undertaken to install a new and fully automated polyester batt production plant that includes automatic weighing and computerised labelling of its batts.
The enhanced undertaking also provides for Auspoly to compensate consumers who bought the affected batts and to publish an educative article about the Trade Practices Act in a major industry publication. Auspoly will contact affected consumers with the cooperation of its wholesale customers.
ss. 52, 53(a), 53(eb) and 55. Alleged misleading or deceptive conduct and making false or misleading representations
Between January 2003 and August 2006 Aussia Australia Pty Ltd imported from New Zealand bulk supplies of squalene and propolis products in capsule form, which were then packaged into retail quantities and labelled 'made in Australia'. Aussia also claimed on its website to operate a modern factory and employ its own researchers, when it had no role in research or manufacture of its products.
These products, traditionally used in Chinese medicine, were sold by Aussia both in Australia and overseas.
The ACCC considered these 'made in Australia' claims were misleading or deceptive in breach of the Trade Practices Act 1974 (the Act) as the products were not substantially transformed in Australia and less than 50 per cent of the cost of manufacture occurred in Australia, so Aussia could not rely on the defences available under the Act for country of origin claims.
Aussia has given an undertaking to:
review promotional material and not represent that products are made in Australia unless it can substantiate those claims
advise resellers and consumers of the incorrectly labelled products
publish a corrective article in an appropriate Chinese language publication
ss. 52 and 53(eb). Alleged misleading or deceptive conduct and false representations concerning the place of origin of goods
Bevco had labelled a number of its fruit juice beverage products as '100% Australian made and owned' although the products predominantly consisted of imported juice.
Bevco used the term on its Bevco and Macquarie Valley branded fruit juice products but some of these products contained 99.9 per cent imported reconstituted juice.
The Trade Practices Act 1974 prohibits companies from engaging in misleading and deceptive conduct and specifically from making a false or misleading representation about the place of origin of goods. To make the claim that a product is made in Australia, it must have been substantially transformed in Australia and 50 per cent or more of the costs of production must have been incurred in Australia.
Bevco has given an undertaking to:
refrain from labelling its beverage products as '100% Australian made and owned' unless it can substantiate the claims
publish a corrective notice
establish and implement a trade practices law compliance program.
ss. 52 and 53(e). Alleged misleading or deceptive conduct and the making of false representations with respect to the price of goods
From September 2005 to June 2006 Bevilles Pty Ltd, a jewellery retailer, published and disseminated a number of catalogues in which some jewellery items were advertised with two prices, a high price struck through with a line above a more prominent lower price.
The ACCC investigated the advertising as part of a joint state and territory offices of fair trading monitoring of jewellery advertising in the lead-up to Mother's Day 2006.
Based on sales information provided by Bevilles, the ACCC was concerned that the two-price advertising of some items misrepresented, in breach of the consumer protection provisions of the Trade Practices Act 1974.
Bevilles has given an undertaking to:
not engage in two-price advertising of jewellery items unless the higher price is no greater than the price at which Bevilles most frequently sold the item in the eight weeks prior to the promotion or, where Bevilles had not made any sales, had offered the item for sale at the higher price in the eight weeks prior to the promotion
ss. 52, 53(a), 53(eb) and 55. Alleged misleading or deceptive conduct and making false or misleading representations
Between January 2003 and August 2006 Careline Australia Pty Ltd imported from New Zealand bulk supplies of squalene, propolis, omega-3 and royal jelly products in capsule form, which were then packaged into retail quantities and labelled 'made in Australia'.
These products, traditionally used in Chinese medicine, were sold by Careline both in Australia and overseas.
The ACCC considered these 'made in Australia' claims were misleading or deceptive in breach of the Trade Practices Act 1974. The products were not substantially transformed in Australia and less than 50 per cent of the cost of manufacture occurred in Australia, so Careline could not rely on the defences available under the Act for country of origin claims.
Careline has given an undertaking to:
review promotional material and not represent that products are made in Australia unless it can substantiate those claims
advise resellers and consumers of the incorrectly labelled products
publish a corrective article in an appropriate Chinese language publication
ss. 53(a), 53(c), 65C and 65F. Alleged supply of goods in breach of mandatory consumer product safety standards and making false or misleading representations
Elecspess is an importer and wholesaler of automotive electrical products. In particular it wholesaled a range of CONDOR LED rear combination lamps that did not meet national vehicle standards. Elecspess has given an undertaking to:
not supply products unless they comply with the relevant standard
quarantine all non-compliant lamps
undertake a product recall and replace affected products
s. 65C. Alleged supply of goods in breach of mandatory consumer product safety standards
Corpeyewear Pty Ltd, an importer and distributor of sports licensed sunglasses, supplied sunglasses which did not comply with the mandatory Australian standards.
The ACCC accepted an undertaking from Corpeyewear on 27 June 2007 to:
refrain from supplying any sunglasses and fashion spectacles that do not comply with the relevant standard
advise retail customers that the sunglasses were not labelled according to the standard and advise the remedial actions which are available
