False claims of ACCC advertising clearance leads to undertakings

The Australian Competition and Consumer Commission has accepted court enforceable undertakings from Stamford Hotels Pty Ltd over a misleading representation made by a former employee of Stamford Hotels, Mr Bruce McLean.

Stamford Hotels owns and operates the Stamford Grand North Ryde Hotel, which is part of a chain of hotels and resorts in Australia and New Zealand known as Stamford Hotels and Resorts.

In April 2008, Mr McLean, who was then General Manager of the hotel, made a representation to a guest of the hotel that the hotel's advertising had been cleared by the ACCC.  The guest had made a complaint about the hotel's advertising of an accommodation special on receiving her account at the end of her stay at the hotel.

Stamford Hotels has acknowledged that the ACCC does not clear the advertising of traders as part of its functions and has admitted that it has contravened section 52 of the Trade Practices Act 1974 through the representation made by Mr McLean.

The ACCC has accepted court enforceable undertakings from Stamford Hotels that it will:

• not make any representation, either orally or in writing, to the effect that its advertising has ACCC approval when this is not the case
• send a letter of correction and apology to the affected guest
• publish a corrective notice in the reception area of the hotel, and
• implement a trade practices law compliance program.

The ACCC wishes to acknowledge that Stamford Hotels has from the outset been very cooperative in resolving this matter.

ACCC Chairman, Mr Graeme Samuel, said today: "Traders should be aware that the ACCC will not hesitate in taking action where traders falsely represent that their goods or services or their advertising have approval from the ACCC."

Media inquiries: Mr Brent Rebecca (02) 6243 1317 or 0408 995 408