Misleading Moccona promotion draws undertaking

Leading coffee distributor and seller, Harris DE Pty Limited, has offered the Australian Competition and Consumer Commission a court-enforceable undertaking over a Moccona promotion, ACCC Chairman, Professor Allan Fels, announced today.

The undertaking follows ACCC concerns about a Harris supermarket promotion last year for its Moccona coffee brand. The ACCC believed the promotion, which included prizes of 1,000 mobile phones, breached parts of the Trade Practices Act 1974 prohibiting misleading or deceptive conduct and misrepresentations about goods or services.

Although Harris' promotion said it was the consumer's responsibility to pay monthly telephone charges, the ACCC believes Harris did not make available, at the point of sale, adequate details of the terms, conditions and overall price of entering into the mobile telephone contracts.

Consequently, consumers were unable, at the point of sale, to assess the contract cost should they win a phone.

Harris agreed to offer mobile phone prizewinners a choice of three options, including a $100 credit against a mobile phone handset and/or service plan of the consumer's choice.

The undertaking also provides for a review of Harris' trade practices compliance program. Harris demonstrated its willingness to cooperate and assist the ACCC in this matter, and agreed to the undertaking in the spirit of ensuring full compliance with the Act.

'Companies should ensure, when conducting promotions, that consumers are provided with adequate information concerning all relevant terms and conditions of taking up prizes,' Professor Fels warned.