Pamphlet distributor admits misleading delivery claims

A leading pamphlet distributor, PMP Distribution, has admitted to providing some of its customers with reports that included incorrect pamphlet delivery statistics.

PMP Distribution delivers advertising material, publications and product samples to Australian households through a network of distributors and deliverers, known as 'walkers', who deliver materials by hand to home letterboxes.

"During 2007 and 2008 PMP Distribution, a wholly owned subsidiary of PMP Limited, provided some of its customers with reports that included incorrect pamphlet delivery statistics—claiming deliveries had taken place in certain areas when they had not," Australian Competition and Consumer Commission Chairman, Mr Graeme Samuel, said today.

"The irregularity came to light as a result of an internal audit by PMP Distribution. When it discovered the problem, it contacted affected customers and approached the ACCC to resolve any Trade Practices Act concerns," Mr Samuel said.

The ACCC has accepted court enforceable undertakings from PMP Distribution that it will:

• implement business procedures and processes to ensure information PMP Distribution provides to its customers is accurate
• provide the ACCC with an independent auditor's report of its business procedures and processes relating to information PMP Distribution provides to its customers, and
• establish and implement a trade practices law compliance program.

The ACCC acknowledges that PMP Distribution from the outset has been cooperative in resolving this matter.

"Businesses must ensure they do not use misleading or false representations in the supply or promotion of their products and services," Mr Samuel said.