The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court against Signature Security Group Pty Limited, alleging false, misleading and deceptive advertising in its promotion of security systems to the public on a 'price plus GST basis'.
The ACCC further alleged breaches of undertakings given pursuant to section 87B of the Trade Practices Act 1974 in which Signature agreed to stop advertising its prices on a GST exclusive basis*.
In commencing proceedings, the ACCC alleged that Signature, in its advertisements in the Yellow Pages, on radio, in brochures, and when quoting prices over the telephone, does so on a GST exclusive basis, thereby misleading consumers as to the price and amount payable to Signature, as well as not stating the full cash price where part of the price is shown.
Further, the ACCC alleged that Signature represented to a particular customer that Signature had an arrangement which allowed it to quote its prices exclusive of GST, thereby falsely misleading or deceiving the customer as to the customers right to be quoted on a GST inclusive basis, and giving the customer the impression that approval had been given for quoting on a GST exclusive basis. The ACCC has not given approval to quote on a GST exclusive basis to Signature.
By engaging in such conduct, the ACCC alleged that not only has Signature breached the undertaking given and accepted by the ACCC on 21 December 2000, Signature has also acted in breach of sections 52, 53, and 53C of the Act.
The ACCC is seeking court orders including:
- Injunctions restraining Signature from making similar misrepresentations in the future
- declarations that Signature has contravened the relevant provisions of the Act
- orders that Signature publish and broadcast corrective advertisements in newspapers and on the same radio stations as the original advertisements appeared
- compensation for affected consumers
- an order requiring Signature to comply with its undertaking given pursuant to section 87B of the Act
- and an order requiring Signature to implement a compliance program at its own expense.
A directions hearing is scheduled for 11 April in the Federal Court, Sydney.