The Australian Competition and Consumer Commission has instituted proceedings against three companies in the Harvey Norman group.
It has also instituted proceedings against two Harvey Norman corporate group individuals, Mr John Slack-Smith and Mr Paul D'Ambra and 15 Harvey Norman franchisees.
The proceedings allege bait advertising and misleading and deceptive conduct in contravention of the Trade Practices Act 1974.
It is alleged that before the introduction of the Goods and Services Tax in June 2000, national advertising was conducted for Harvey Norman Computers & Communications stores which featured a promotion for GST related software, Quicken Quickbooks, for $199 with a bonus software bundle valued at more than $900.
The ACCC alleges the Harvey Norman Quicken Quickbooks promotion was advertised when the parties were aware that quantities of the bonus software were insufficient to meet consumer demand, in contravention of sections 52, 55 and 56 of the Act.
The ACCC further alleges that representations made in catalogue advertising misled consumers in relation to the eligibility for taxation benefits associated with the purchase of Quicken Quickbooks software and digital cameras before the introduction of the GST, in contravention of sections 52 and 53 of the Act.
The ACCC is seeking declarations, injunctions, corrective public notice, findings of fact and an independent audit of the companies' trade practices compliance program.
A directions hearing has been set down for 13 December 2002 at 10.15 a.m. in the Federal Court, Melbourne, before Justice Ryan.
Investigation of this matter began in July 2000 but was delayed as a result of other court proceedings during the process of investigation. The ACCC also took action to have five franchisee companies reinstated that were voluntarily de-registered during the investigation process.