The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court against Pest Free Australia Pty Ltd, a company that supplies a device that claims to rid premises of rats, cockroaches and other pests.
The ACCC alleges that Pest Free made false and misleading representations concerning the performance characteristics of its 'Plug In Pest Free' electronic device in various television advertisements, newspapers advertisements, on its website and in various brochures and promotional material. These included claims that the device when plugged into, and utilising electricity from, a normal power supply outlet within the person’s premises, will:
- prevent the intake of water and food nutrients by any noxious or destructive insects and vermin which inhabit the person’s premises in proximity to the device
- cause the death by dehydration and/or starvation of such insects and vermin if unable to escape the effects of the device
- generate vibrations that repel such insects and vermin
- provide protection from noxious or destructive insects and vermin all day every day continuously into the future
- break the breeding and feeding cycles of cockroaches, mice, rats and other noxious or destructive insects and vermin
- not cause the noxious or destructive insects and vermin to develop an immunity against the protection to be provided
- eliminate cockroaches, mice, rats and other noxious or destructive insects and vermin all day every day continuously into the future
- gradually cause noxious or destructive insects and vermin (including cockroaches, rats and mice) to move out of a person’s home
- disorientate noxious or destructive insects and vermin such that they become easier to catch
- stress, disorientate and dehydrate noxious or destructive insects and vermin to such an extent that they will eventually die
- create an environment where things such as cockroaches, mice and rats cannot eat, sleep or breed.
The ACCC alleges that the representations are false and misleading in breach of sections 52 and 53(c) of the Trade Practices Act 1974 because the device does not work as claimed and Pest Free have no reasonable basis for making the claims. Under section 51A of the Act if a company makes a representation as to a future action it must have a reasonable basis for making the claims.
The ACCC is seeking court orders including:
- declarations
- corrective advertisements
- injunctions
- refunds to consumers
- removal of the product from sale
- costs.
The matter has been listed for a directions hearing in the Federal Court, Sydney, on Friday, 6 December 2002.
Update: Federal Court accepts undertakings
11 November 2004: The ACCC’s proceedings in the Federal Court against Pest Free Australia Pty Ltd were discontinued following the court’s acceptance of undertakings from Pest Free Australia Pty Ltd.
See: Federal Court accepts undertakings on plug-in pest device