BAR Group pays penalty for alleged misleading advertising

11 March 2020

B.A.R Group Pty Ltd (BAR Group) has paid a penalty of $12,600 after the ACCC issued an infringement notice for allegedly misleading consumers about the running power of a portable generator.

In September 2019, BAR Group advertised on its website that its 123 G8100-HELT portable generator was capable of achieving a running power of 6 kW.

The ACCC alleges that BAR Group’s representation was false or misleading, in breach of the Australian Consumer Law.

“We were concerned that the generator was only capable of achieving a running power of 6 kW for a short time and not continuously for several hours,” ACCC Commissioner Sarah Court said.

“Businesses must ensure that they do not overstate the performance features of goods or services that they are selling.”

“Consumers rely on running power claims when selecting an appropriate generator and if those claims are not correct they may purchase a specific model only to find it is not capable of generating the required power output,” Ms Court said.

“Generators can be in high demand following natural disasters such as bushfires, and overstated claims could also disadvantage suppliers who are correctly advertising the performance characteristics of their portable generators.”

The ACCC will now engage with the industry to remind businesses that power claims must be accurate, and that they must comply with their Australian Consumer Law obligations.

Background:

BAR Group is a company that imports component parts from manufacturers, which it assembles and wholesales to its Australian dealership network and to consumers.

Portable generators are used for a range of needs including emergency power for small appliances and power tools on jobsites or camping.

Running power ratings of portable generators are important in assisting consumers to determine what power capability they need.

Notes to editors:

The payment of a penalty specified in an infringement notice is not an admission of a contravention of the Australian Consumer Law.

The ACCC can issue an infringement notice when it has reasonable grounds to believe a person or business has contravened certain consumer protection laws.

Release number: 
36/20
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