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Thompsons of Shepparton Pty Ltd (ACN 102 901 075), trading as Thompson Motor Group (Thompsons), is a retailer of new and used automotive vehicles, parts and accessories as well as a mechanical repair service.
From 27 September 2007 until 17 November 2007 Thompsons represented in a television advertisement on the Price Television Network that:
Video Ezy has given a court enforceable undertaking under section 87B of the Trade Practices Act 1974 to the ACCC, after it raised concern that the overall impression created by "price guarantees” in its television advertisements were likely to have breached section 52 and 53(e) of the Trade Practices Act 1974.
In October 2007, Video Ezy changed its television commercials to include the statement "Cheapest price in Australia, guaranteed”, which featured prominently in its advertisements.
This statement was either qualified in fine print by “Or we’ll beat any lower advertised price” (the “qualification”), or not at all.
Kerandis Proprietary Limited operates 3 furniture retail outlets in Melbourne under the name of Urban Rhythm Furniture.
In the course of a store-wide Christmas promotion in December 2007, Kerandis offered all the furniture items in its stores at a 12% discount using comparative (strike through) two-price representations.
These representations were in the form of price comparisons such as “$2,240 $1795” where items were offered at a price which was compared to a previous crossed out higher selling price.
In the course of the Christmas promotion, Kerandis introduced new items into its stores which had never previously been sold by Kerandis and immediately offered them at a discount using comparative two-price representations.
Kerandis acknowledged that it had used comparative two-price representations in this manner in past sales.
Alco Battery Sales (Aust) Pty Limited is an importer and distributor of batteries for various applications including the Fullriver DCG Series batteries (the Products) which are represented as gel batteries.
The Products are imported from the manufacturer, Fullriver Battery Manufacture Co.
Chelsea Girl Pty Ltd the business that operates Chelsea stores in Victoria, New South Wales and Queensland has offered a section 87B court enforceable undertaking to the ACCC following its supply to consumers of sunglasses that failed to comply with the mandatory consumer product safety standard prescribed under the Trade Practices Act 1974 (the Act), namely AS/NZS 1067:2003 Sunglasses and fashion spectacles (the Standard).
Specifically, Chelsea supplied sunglasses that, despite including a swing tag that represented the sunglasses had been tested to meet Australian standards, failed to include the lens category number and the corresponding lens category description required by the Standard.
Subsequent to the ACCC raising its concerns with Chelsea in December 2007, Chelsea acted promptly, including immediately organising staff training on the Standard and subsequently conducting a voluntary product recall of five styles of Chelsea sunglasses on 16 February 2008 that were found to have failed the performance requirements of the Standard.
Chelsea admitted it did not comply with the labelling requirements and subsequently the performance requirements of the Standard in contravention of s65C of the Act and acknowledged it may have also contravened ss52, 53(a) and 55 of the Act.
In resolution of the matter, Chelsea has undertaken to:
ensure sunglasses supplied by it that are subject to a mandatory safety and/or information standard prescribed under the Act comply with the relevant standard;
put in place procedures to ensure display and sales stock of sunglasses are appropriately labelled; and
implement a trade practices compliance program to minimise the risk of future breaches of Part V, including sections 52, 53(a), 55, 65C & 65D of the Act.
The ACCC has accepted court enforceable undertakings from Karragullen Cool Storage Pty Ltd (Karragullen) for breaches of the Horticulture Code of Conduct (Code), a mandatory industry code under the Trade Practices Act 1974.
Karragullen:
traded as a merchant without having Code compliant Horticultural Produce Agreements in place with the growers it has traded with;
traded as a merchant without preparing, publishing or making publicly available a document setting out the general terms and conditions under which they would trade with growers of horticultural produce (terms of trade); and
traded as a grower without having Code compliant Horticultural Produce Agreements in place with the merchants it has traded with.
Karragullen has acknowledged it has contravened the Code and section 51AD of the Act.
Harvey Fresh is incorporated in Western Australia and carries on business as a manufacturer and distributor of Harvey Fresh fruit juice and dairy products.
Between January 2008 and March 2008, Harvey Fresh manufactured and distributed a 250ml Apple & Blackcurrant Fruit Juice product (Product) with labelling displaying the following representations:
‘100% JUICE’;
‘APPLE & BLACKCURRANT’; and
in smaller font on the side of the label ‘INGREDIENTS: AUSTRALIAN APPLE CONCENTRATE, BLACKCURRANT FLAVOUR, GRAPE SKIN EXTRACT, COLOUR 466’.
The ACCC believes that the use of the ‘100% Juice’ wording on the label of the Product indicates that the juice contains 100% of the respective characterising ingredient, that is apple and blackcurrant juice.
The ACCC is concerned that where flavourings, colours or extracts have been added to the Product, the ‘100% juice’ claim may potentially mislead consumers who believe the Product is 100% fruit juice in its composition.
Harvey Fresh has acknowledged the ACCC’s concerns that its conduct may have misled consumers and that such conduct may have been in contravention of sections 52 and 53(a) of the TPA.
Harvey Fresh has cooperated with the ACCC and the ACCC has accepted undertakings from Harvey Fresh pursuant to section 87B of the TPA to address the conduct.
Harvey Fresh has undertaken that it:
will not make a representation that a fruit juice product contains 100% juice, when the product does not contain 100% juice;
will contact all retail customers to which it has supplied the Product to inform them of the conduct and recall all units of the Product that it has supplied to them;
will publish an information notice on its website for a period of 30 days informing consumers about the conduct; and
it will implement and maintain a Trade Practices Compliance Program for the purpose of ensuring that the officers and employees of Harvey Fresh are aware of their responsibilities and obligations under sections 52 and 53 of the TPA.
Laura Ashley (Australia) Pty Ltd (LA) sells home furnishings, women's fashion, made to measure goods and design consultancy services.
LA has acknowledged its previous two-price advertising of bed linen may have contravened sections 52 and 53(e) of the TPA.
LA's conduct involved a promotional strategy based on establishing a 'regular price' for a product line by launching the product in a limited number of stores for a limited time.
Subsequent supply to all other stores Australia-wide and subsequent discounts all relied on the 'regular price' as the starting point for any discounts or sales.
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