ACCC accepts undertakings for incorrect country of origin claims

Mainstyle Holdings Pty Ltd, which trades as Platinum Menswear in Perth, and Platinum Menswear Pty Ltd, which trades as Platinum Menswear in Melbourne, have acknowledged it misrepresented the country of origin of suits to consumers during a suit sale.

Between April and September this year, Platinum Menswear advertised in newspapers in Perth and Melbourne and in the shop front window of their Perth and Melbourne stores, a Buy One Get One Free Studio Italia suit offer. The ACCC was concerned that the advertisements were misleading and a misrepresentation as to the country of origin of the suits as the advertisements represented that all the suits in the offer were made in Australia despite a number of those suits being made in China.

When the ACCC raised these concerns, Platinum Menswear acknowledged the advertisements were incorrect, as a number of the Studio Italia suits being sold during the promotion had been sourced from China. In the ACCC's view, the representations were likely to have contravened the consumer protection provisions of Trade Practices Act 1974.

Platinum Menswear cooperated fully with the ACCC and immediately took action to ensure incorrect country of origin advertising would not occur again. Platinum Menswear has given court-enforceable undertakings that it will:

• not use country of origin claims in future advertising and marketing campaigns unless those products were in fact sourced from the country claimed in the advertising
• cause a corrective notice to be published in various newspapers in Perth and Melbourne advising consumers of the incorrect country of origin representations
• cause a corrective notice to be placed in the shop front window of both its stores in Perth and Melbourne advising consumers of the incorrect country of origin representations
• offer a refund to all Platinum Menswear customers who purchased a Studio Italia suit the subject of the promotion who advise Platinum Menswear staff they believe they had been misled by the place of origin representation and had been provided with a Studio Italia suit that was made in China instead of one made in Australia as advertised, and
• implement trade practices law compliance training for all staff and a corporate complaints handling system to ensure similar potential breaches of the Act do not occur in the future.

Businesses need to be particularly careful when they are putting together advertising material to ensure all claims being made can be substantiated.

The ACCC considers country of origin claims to be a particularly valuable marketing tool for businesses as many consumers place a premium on goods that are Australian made. As such, the ACCC will not hesitate to take action against traders making such false claims.

The ACCC will continue to monitor advertising of this nature to ensure compliance with the Act.