Express Promotions Australia Pty Ltd - s.87B undertaking

Express Promotions ran a promotion that sought to encourage businesses to use their $200 GST Direct Assistance Certificate ("GST certificate") with the company. The promotional forms included statements such as "Do you want $200 worth of free stationery?" with only some forms having a disclaimer to the statement in small font: "By using your $200 GST Direct Assistance Certificate". For a business that expressed interest, Express Promotions sent a kit that included a covering letter entitled "You want $200 worth of free stationery?" The kit included an order form. The business was asked to return its completed order form and GST Certificate to obtain stationery. Only businesses who completed the kit and sent their GST certificate were provided stationery.

On 28 June 2000, the Commission wrote to Express Promotions alerting it to its concern that Express Promotions may have engaged and may be continuing to engage in conduct that was misleading or deceptive or likely to mislead or deceive contrary to section 52 of the Act.

The Commission expressed concern that the promotional forms would mislead consumers to believing they could obtain free stationery when in fact they had to use a GST certificate to obtain the stationery.

Express Promotions undertook to cease using the promotional forms and kit and has undertaken to send apologies to all people sent the promotional forms. Further, those consumers who purchased stationary believing that it was free are entitled to a refund.

Express Promotions will also implement a trade practices compliance program.