The Australian Competition and Consumer Commission today advised consumers to be cautious when purchasing some CDs after reports that overseas some record companies have applied new anti-copying technology to some compact discs.
"The ACCC's attention has been drawn to this matter following reports that Universal is currently releasing its first copy-protected CD in the United States", ACCC Chairman, Professor Allan Fels, said today.
"Certain CDs may not be able to be played in some electronic equipment, particularly CDROMs, due to the measures taken by the recording companies to stop illegal copying. This is more likely to be found on CDs purchased overseas, particularly over the Internet, than in Australian stores.
"Overseas, there have been reports that some customers have already been disappointed as they were not told that the CDs they purchased had limited use.
"Retailers should inform consumers if a CD is copy-protected and that it will not play on the usual electronic equipment – especially on computer CDROMs. Also if a consumer believes that a CD will play, but it doesn't, he or she can return it to the place of purchase".
The ACCC also reminds manufacturers of their obligation to inform consumers if CDs have limited use. The ACCC has recently written to the major record companies to inform them of this obligation.
"The Trade Practices Act makes it clear that a party selling goods must provide consumers with all information regarding the uses or benefits of a product. Any failure to do so in the present case by those involved in manufacturing and selling affected compact discs will be dealt with under the Act", Professor Fels said.
The ACCC notes that recording companies are permitted by Australian copyright law to prevent copying of their CDs. This does not mean, however, that consumers infringe copyright by simply playing a disc. The ACCC is concerned to ensure that consumers are made fully aware of any restrictions on the use of these discs before they pay for them.
"Consumers need to be fully aware of what they are paying for so they can make informed purchasing decisions. Essentially, the ACCC's concerns stem from the fact that consumers have been able to play CDs in an unrestricted manner in the past, and there is a reasonable expectation that all discs will continue to work in the usual manner".
MEDIA NOTE: Professor Fels will be available for interview today on this matter and also similar restrictions on DVDs at 1 p.m. at the corner of Alfred and Greville Streets, Prahran, Melbourne.