Court finds Panasonic bonus Nintendo Wii promotion misled consumers

As a result of action by the Australian Competition and Consumer Commission, the Federal Court today declared that Panasonic Australia Pty Ltd misled consumers in its 2008 Bonus Wii promotion.

In orders handed down today in Adelaide, Justice Mansfield found that Panasonic engaged in misleading or deceptive conduct. Panasonic's advertising represented that consumers who purchased a participating television would be eligible to receive a Bonus Nintendo Wii gaming console by redemption.

In order to submit a valid redemption claim, consumers required the serial number of the participating television within 14 days of purchase in circumstances where:

• the serial number was only obtainable on delivery of the television to the consumer, and
• there was no guarantee that a consumer would receive delivery of the participating television within 14 days of purchase or within sufficient time from the date of purchase to allow submitting of a redemption claim within 14 days of purchase.

The court considered that the advertising contained fleeting fine print which was difficult to absorb and failed to convey that matters outside the control of the purchaser could disqualify the purchaser from receiving the Bonus Wii.

As well as a declaration, the court ordered that Panasonic establish and maintain a trade practices compliance program for three years to ensure that Panasonic staff are aware of their obligations under the Trade Practices Act 1974. Panasonic was also ordered to pay the ACCC's costs.

ACCC chairman Graeme Samuel said it is not enough to give the impression that 'conditions apply' to an offer in circumstances where particularly unusual and onerous conditions may render a consumer ineligible to receive the goods or services offered.

This outcome sends a warning about inducing consumers by offering free or bonus goods as 'cash-back' or 'redemption' offers and failing to deliver.