Uniden Australia Pty Ltd, a manufacturer and wholesaler of telecommunication products throughout Australia, has offered court enforceable undertakings to the Australian Competition and Consumer Commission about claims that Uniden's Atlantis 250 marine radio was waterproof.
Uniden represented that its marine radio, a VHF handheld two-way radio, available to consumers since 31 August 2006, was waterproof as certified to meet the Japanese Industrial Standard level 4. This standard relates to tests for the protection against the ingress of water into electrical equipment.
The ACCC alleged Uniden's claims may have amounted to misrepresentations in contravention of the Trade Practices Act 1974 as the JIS level 4 only refers to a classification of 'splash-proof', not 'waterproof'.
Uniden's prominent use of the term 'waterproof' displayed in large font was an integral part of the representations that appeared on marine radio packaging and the product's promotional material, including that on Uniden's website at www.uniden.com.au.
The ACCC was concerned consumers would understand the term 'waterproof' to mean the marine radio could be immersed in water for any specific time and depth without the possibility of sustaining water damage when in fact the marine radio was only 'splash-proof'.
Additionally, the ACCC considered the wording of Uniden's own express warranty in respect of the marine radio arguably excluded, restricted or modified the statutory rights available to consumers concerning the conditions and warranties implied into transactions pursuant to the Act. Uniden's warranty may have misrepresented to consumers that they had no statutory protection by the exclusion under its own warranty of coverage for consequential loss or damage.
Uniden acknowledged the ACCC's concerns and that it may have contravened the Act by its representations.
As part of its undertakings, Uniden will provide owners of the marine radio represented as 'waterproof' with the option of a full refund*. Uniden has also extended its own warranty protection to cover for water damage which will also allow consumers in these circumstances to elect to receive a full refund, product replacement or repair.
"Consumers are entitled to expect that products represented as having certain features will in fact deliver on those features," ACCC Chairman, Mr Graeme Samuel, said today.
"Traders trying to capture consumers' attention with prominent claims cannot negate those representations simply by the use of qualifiers. In this case the ACCC notes that the qualifiers tried to negate the overall impression created and even then in many instances were not placed in close proximity to the main promotional claim."
As part of the undertakings, Uniden will also:
- replace all marine radio packaging containing the term 'waterproof' with revised packaging containing the term 'splash-proof'
- write to all Uniden retailers/wholesalers and service agents advising of the ACCC's concerns, the packaging changes and the additional rights available to consumers
- publish a public disclosure notice on Uniden's website, and
- establish a trade practices law compliance program.
A copy of the Uniden undertaking will be available from the Public Registers list located at the ACCC website.