Major Australian hardware trader Bunnings Building Supplies Pty Ltd will correct misleading country of origin claims made during an Australia Day-linked promotion in South Australia, Northern Territory and Western Australia after Australian Competition and Commission investigations.
"During a recent 'Do it for Australia, Buy Australian Made' promotion in the week before Australia Day this year Bunnings ran an promotion using in-store advertising, home-delivered and newspaper insert brochures and television ads," Acting ACCC Chairman, Mr Allan Asher, said today. "But in its stores, Bunnings put or fixed A4-size price cards captioned: 'Do It For Australia Buy Aussie Made' on products in the promotion, when many products were not Australian made.
"The ACCC believes these price cards next to non-Australian made products breached the Trade Practices Act 1974 as they falsely represented the product's place of origin and was likely to mislead consumers into believing the products were Australian-made.
Bunnings acknowledges that its conduct is likely to have contravened the Act and has given the ACCC a section 87B court-enforceable undertaking that it will: refund the full purchase price of products (upon return of the product and proof of purchase) to any consumer who claims they were misled by the promotion; not misrepresent the place of origin of any products in any of its future promotional activities; place corrective advertisement in newspapers, television and in-store; and institute and maintain a trade practices compliance program. "The ACCC's fast action in the matter reflects its serious view of potentially misleading claims or representations about country of origin.
"The phrase `Australian-made' appeals strongly to consumers, giving the impression that Australian-based workers and industry will benefit from the purchase of the products involved. Businesses that represent certain products as Australian-made must recognise the responsibility that comes with such claims. Businesses making improper use of country of origin claims not only mislead consumers, but may obtain an unfair commercial advantage over companies accurately using such claims.
"Those who consider they may have been misled by the price cards on non-Australian products should bring the product, together with proof of purchase, to their nearest Bunnings store for a full refund of the purchase price.
"The ACCC wishes to acknowledge that once this matter was drawn to Bunnings' attention the company quickly removed all price cards from products in all stores within 24 hours and has cooperated fully with the ACCC in offering the above undertakings".
"During a recent 'Do it for Australia, Buy Australian Made' promotion in the week before Australia Day this year Bunnings ran an promotion using in-store advertising, home-delivered and newspaper insert brochures and television ads," Acting ACCC Chairman, Mr Allan Asher, said today. "But in its stores, Bunnings put or fixed A4-size price cards captioned: 'Do It For Australia Buy Aussie Made' on products in the promotion, when many products were not Australian made.
"The ACCC believes these price cards next to non-Australian made products breached the Trade Practices Act 1974 as they falsely represented the product's place of origin and was likely to mislead consumers into believing the products were Australian-made.
Bunnings acknowledges that its conduct is likely to have contravened the Act and has given the ACCC a section 87B court-enforceable undertaking that it will: refund the full purchase price of products (upon return of the product and proof of purchase) to any consumer who claims they were misled by the promotion; not misrepresent the place of origin of any products in any of its future promotional activities; place corrective advertisement in newspapers, television and in-store; and institute and maintain a trade practices compliance program. "The ACCC's fast action in the matter reflects its serious view of potentially misleading claims or representations about country of origin.
"The phrase `Australian-made' appeals strongly to consumers, giving the impression that Australian-based workers and industry will benefit from the purchase of the products involved. Businesses that represent certain products as Australian-made must recognise the responsibility that comes with such claims. Businesses making improper use of country of origin claims not only mislead consumers, but may obtain an unfair commercial advantage over companies accurately using such claims.
"Those who consider they may have been misled by the price cards on non-Australian products should bring the product, together with proof of purchase, to their nearest Bunnings store for a full refund of the purchase price.
"The ACCC wishes to acknowledge that once this matter was drawn to Bunnings' attention the company quickly removed all price cards from products in all stores within 24 hours and has cooperated fully with the ACCC in offering the above undertakings".