Radio Rentals will offer full cash refunds to customers who bought Westinghouse 440 litre 2 door fridge/freezers in the company's 'Easter Specials' promotion.

The offer is one of several undertakings given to the Australian Competition and Consumer Commission after a recent investigation.

The investigation revealed that for several weeks during January, Radio Rentals ran advertisements in South Australian city and country newspapers headlined "Easter Specials".

The advertising represented that all the products featured were specially priced and offered the benefit of a special deferred payment plan - first payment in January, second payment deferred until April (after Easter).

One of the products was the Westinghouse fridge/freezer, advertised at "Now $1479". In fact, that had been the normal price of the fridge/freezer since the previous September.

The ACCC believes Radio Rentals use of the words 'Now' or 'Now Only' where the associated price was not a genuine reduction of the price at which the goods have previously been sold by Radio Rentals, was likely to be a false or misleading representation in breach of the Trade Practices Act

. "This action closely follows recent fines of $75,000 against another retailer, Cue, for misrepresentations as to price," Acting ACCC Chairman, Mr Allan Asher, said today.

"Retailers have now had fair warning that to avoid misleading consumers, and thereby attract ACCC attention, they must ensure that whenever price representations are made they are accurate."

In addition to the refunds, Radio Rentals will publish an apology in each store and also in the same newspapers where the advertising originally appeared. The company has further agreed to develop and implement a three-year trade practices compliance training program for all staff.