The Australian Competition and Consumer Commission has instituted legal proceedings against Terania Pty Ltd, trading as Barry Solomon Gouger Rugs, and Australian Rug Expos Pty Ltd for alleged misleading or deceptive conduct and false or misleading representations about sales conducted at the Darwin Showgrounds and at EPIC, Canberra in 2005 and 2006.
The ACCC alleges that Terania Pty Ltd breached section 52 of the Trade Practices Act 1974 by representing in television advertisements for rug and manchester sales in Darwin, that:
- the sales would end sooner than they did when this was not the case and not intended to be the case, and
- that all stock would be sold, given away or otherwise disposed of at each sale when this was not the case.
The ACCC further alleges that Terania Pty Ltd and Australian Rug Expos Pty Ltd have breached sections 52 and 53(e) of the Act by falsely representing, through labelling manchester products with "sale price stickers" and "was price stickers", that these products had previously been sold at the higher "was" prices.
The ACCC is seeking from the Federal Court:
- declarations that the conduct of Terania Pty Ltd and Australian Rug Expos Pty Ltd is in breach of sections 52 and 53(e) of the Act
- orders restraining Terania Pty Ltd and Australian Rug Expos Pty Ltd from engaging in such conduct in the future
- an order that Terania Pty Ltd and Australian Rug Expos Pty Ltd both implement a trade practices compliance program, and
- an order for costs.
The matter has been listed for a directions hearing in the Federal Court, Darwin, on 22 March 2007.