The Australian Competition and Consumer Commission has accepted court enforceable undertakings from Termico Pest Management Pty Ltd over misleading claims about its termite protection warranty.
Termico Pest Management Pty Ltd trading as Termico Pest Management Services installs and maintains termite barrier systems in residential homes in Western Australia.
An ACCC investigation found that, prior to April 2004, Termico represented to new homeowners that its 'New Home Termite Protection Warranty' (also referred to as the 'New Home Termite Protection Guarantee' or 'Complete Timber Replacement Warranty') lasted for 10 years when, in fact, it was an annual warranty that could be renewed on payment of a fee.
Termico has acknowledged that it may have contravened sections 52 and 53(g) of the Trade Practices Act 1974 after concerns about its conduct were raised by the ACCC.
The undertakings provided by Termico follow similar undertakings recently provided to the ACCC by two other companies supplying termite protection products or services. In each case the companies, one in Queensland and the other in WA, made potentially false or misleading representations about the duration of the voluntary warranty that was supplied with the product or service.
"Businesses that choose to provide a voluntary warranty are obliged to honour any voluntary warranty that is put in place, and to not engage in conduct that is likely to, or does mislead or deceive consumers regarding the terms of the warranty", ACCC Chairman, Mr Graeme Samuel, said today.
Termico has provided court enforceable undertakings that it will:
- not make the same representations in future
- write to warranty holders to explain the effect of its conduct, and
- implement and maintain a trade practices compliance program.