The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Perth, against Thorn Australia Pty Ltd trading as Radio Rentals alleging that representations made in its 'Rent Two, Get One Rent Free' advertising campaign in October and November 2002 and its 'Rent, Try, Buy' campaign in 2003 were misleading.
The ACCC alleges that in these campaigns, Radio Rentals advertised the supply of goods at a weekly rental price but did not specify the cash price for the goods.
The ACCC also alleges that in the 'Rent Two, Get One Rent Free' television advertising, Radio Rental did not disclose, or sufficiently disclose, the advertised offer was subject to terms and condition. These qualifications stated that the free rental only applied to the third item with the lowest rent; it only applied to selected items and was based on a minimum 18 month rental contract; and the free rental for that third item was available only while the consumer continued to rent the original two items.
The ACCC alleges that Radio Rentals breached section 52 of the Trade Practices Act 1974, which prohibits conduct by a corporation that is misleading or deceptive, or is likely to mislead or deceive; section 53(g), which prohibits a corporation from making a false or misleading representation concerning the existence of conditions; and section 53C, which requires corporations to specify the cash price of goods in certain circumstances.
The ACCC is seeking declarations, injunctions, corrective notices, other remedial orders and costs.
A directions hearing has been set for 2 July 2003.