Court undertakings over LED autolamps claims

LED Technologies Pty Ltd and its director, Mr Anthony Ottobre, have given undertakings to the Federal Court, Melbourne over claims about a range of its LED Autolamps.

The Australian Competition and Consumer Commission had instituted proceedings against the company and Mr Ottobre alleging misleading and deceptive conduct.

LED Technologies and Mr Ottobre, without admitting liability, undertook that in relation to a range of its autolamps, known as LED Autolamps series 35, 75, 80, 100 and 125 they will not make any representations:

• on product labels and packaging to the effect that any parts of the LED Autolamps are made from polycarbonate, when that is not the case
• that the LED Autolamps are of a particular composition when that is not the case, and
• that the LED Autolamps have performance characteristics or benefits that they do not have.

The undertakings to the court have the same effect of an injunction and non compliance would amount to contempt of court.

"Traders must ensure they do not use misleading or false representations in the supply or promotion of their products," ACCC Chairman, Mr Graeme Samuel, said today.  "The ACCC continues to monitor the market and targets traders which engage in misleading and deceptive conduct to the detriment of consumers."

LED Technologies gave further undertakings to implement a trade practices law program and take reasonable steps to ensure that senior managers attend. Mr Ottobre will attend trade practices training.

On the agreement of the parties, on 27 April 2009 Justice Tracey noted the undertakings given to the court and ordered that the respondents pay a contribution to the ACCC's costs and dismissed the proceedings.

In 2007, the ACCC received a complaint that LED Technologies was supplying the LED Autolamps in packaging stating that the lights were made from polycarbonate when they were made out of hardened acrylic.  After being notified of the ACCC's concerns, LED Technologies took some corrective steps and proposed to give undertakings under section 87B of the Trade Practices Act 1974.  The ACCC did not consider the proposed undertakings suitable to address its concerns and instituted proceedings in the Fast Track list of the Federal Court in Melbourne.

"The ACCC carefully assesses whether undertakings offered by traders under section 87B of the Act address the ACCC's concerns.  If the ACCC believes the proposed undertakings are not suitable, it will consider whether further action, including litigation, is needed to achieve consumers' protection."