Businesses offer undertaking after breaches

The Australian Competition and Consumer Commission has accepted undertakings from businesses: Go-Lo, Moduplay, and Megatoy Play Systems Pty Ltd, ACCC Chairman, Professor Allan Fels announced today.

"The ACCC rejected the option to litigate against these businesses after their prompt and total cooperation about their behaviour," he said.

Moduplay and Megatoy Play Systems entered into an anti-competitive agreement in 1996 whereby Megatoy would not bid for contracts to supply playground equipment to local councils, when Moduplay intended to bid.

The ACCC believed the agreement was potentially in breach of section 45 of the Trade Practices Act 1974 which deals with collusive behaviour.

Moduplay and Megatoy have agreed to implement a trade practices compliance program and provide playground equipment, worth thousands of dollars, to affected local councils.

In another matter, Go-Lo has fully cooperated in its relationship with the ACCC. Go-Lo was found by the ACCC to have potentially contravened section 66C of the Act, dealing with labelling, as a number of cosmetic goods sold in its stores failed to meet required standards.

In its undertaking Go-Lo agreed that it would ensure that any offending goods will be labelled appropriately and that Go-Lo will implement a trade practices compliance program.

"The result of the undertaking is that consumers can obtain cheaper cosmetics and know what ingredients are contained within the cosmetic product they are buying", Professor Fels said today. "All businesses, whether they be large or small, should be aware of their obligations under the Act as the ACCC applies it without fear or favour".

"Companies, even small ones, which engage in wilful, persistent breaches, especially in economically significant industries, should expect a stern approach".