"Target has issued a media release today claiming that the Australian Competition and Consumer Commission has "demonstrated a 'sue now, talk later' approach", ACCC Chairman, Professor Allan Fels, said today.
"This is not correct. Target claims 'numerous attempts … to gain more information from the Commission had been rebutted and the Commission has refused to meet Target representatives prior to serving proceedings'. This is incorrect.
"The ACCC wrote to Target on 26 July raising concerns about alleged misleading and deceptive conduct and suggesting that Target offer undertakings to the ACCC which would be enforceable in court, if necessary.
"Further, the ACCC did not initially propose to go to court but sought to settle by undertakings.
"The matter was discussed with Target (or a senior representative of Coles Myer) on 1 August. Target replied on 2 August refusing to offer an undertaking and denying misleading advertising.
"In the meantime, the advertising campaign continued and the ACCC became aware that it was more extensive than it originally thought. It raised these matters with Target on 14 August.
"On 17 August Target replied seeking further information and explanation, a request for a meeting, etc. It advised that if the ACCC was to launch proceedings it would use the letter in relation to costs, especially as there had not been a clear explanation of the ACCC's concerns.
"In view of the information about the extent of the advertising and its continuation and in view of the lack of progress and delay from Target the ACCC decided to seek orders in the Federal Court.
"On 18 August there were discussions by telephone with a company solicitor for Target. On 25 August a final letter of demand detailing the ACCC concerns was sent to Target. The letter sought consent court orders, indicated a willingness to discuss further related issues and set out a timetable.
"On 1 September Target's lawyers replied, offering nothing substantive.
"On 5 September proceedings were instituted. Target's lawyers said they did not have instructions to accept service but service was finally effected.
"It is obvious from the above that there was in fact extensive consultation and willingness to talk by the ACCC.
"The ACCC cannot understand Target's claims that 'it has not been given the opportunity discuss the allegations with the Commission or understand the extent to which the Commission contends people were affected'.
"This matter will now have to be resolved in Court, the ACCC contends that the breach of the Trade Practices Act 1974 was straightforward and corrective action was indicated as a remedy some time ago".