The Australian Competition and Consumer Commission has settled its legal proceedings against Discount Electrical Centre, ACCC Chairman, Professor Allan Fels, said today.
"The ACCC commenced legal action a month ago after Discount Electrical made representations about the impact of the introduction of the GST on prices of electrical goods including televisions and DVD players. Discount Electrical has given undertakings to the Federal Court, Melbourne that it will not make representations that the price of televisions and DVD players will increase as a result of the introduction of the New Tax System.
"Discount Electrical also gave an undertaking to pay reasonable compensation to all persons who have entered into agreements to purchase televisions and DVD players in reliance on the representations for any loss incurred as a result of the purchase. Discount Electrical also undertook to place corrective advertising and to institute a trade practices compliance program. Discount Electrical was ordered to pay the ACCC's costs of the proceeding in an agreed sum.
'The case highlights the importance of ensuring advertising claims about the impact of the GST are accurate."