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The ACCC raised concerns with Hutchison in relation to two separate mobile phone deals.
The first matter related to the variation of the $99 Talk Cap and Free 10 offer by Hutchison, and the second matter related to advertising and promotion of a handset upgrade offer.
In August 2003, Hutchison introduced the Rate Guarantee which provided that the rate offered on certain rate plans would not be increased for 2 years from the date the customer connected to one of the plans.
The ACCC has expressed the view that publishing a price of an airfare that does not adequately disclose the total price payable by a consumer may contravene sections 52, 53(e) and 53C of the TPA.
Chubb has provided section 87B undertakings for the implementation of a comprehensive trade practices compliance program
The main elements of the compliance program are as follows:
changes to compliance and reporting structures, including regular compliance committee meetings and a disciplinary code for employees;
changes to company procedures to ensure that Chubb can respond to trade practices compliance issues, including a review of existing company procedures and linking employee performance appraisals and incentives to trade practices compliance;
the introduction of new hand held technology to provide for the electronic verification of service delivery in Chubb’s mobile patrol business;
the establishment of new procedures for the review of all company advertising and promotional material;
the implementation of annual trade practices compliance training for relevant employees and officers and ensuring that such training is provided to new employees as part of their initial induction program;
retaining an independent compliance practitioner to conduct annual audits of the Compliance Program; and
to review existing complaints handling procedures and to ensure that these procedures are consistent with the relevant Australian Standard (AS4269-1995).
Chubb has also undertaken to develop a voluntary code of conduct for the mobile patrol industry and to provide a copy of the code to all recognised security industry associations.
Love N Care Pty Ltd (the Company) has supplied baby walkers, described as 'Construction' and 'Police' (the baby walkers) that do not comply with the mandatory product safety standard for baby walkers as they were not labelled with the appropriate warning instructions.
Baby walkers manufactured or imported into Australia must be labelled in accordance with the Trade Practices (Consumer Product Safety Standard) (Baby Walkers) Regulations 2002 (the Standard).
The Company agreed to co-operate with the ACCC by providing a section 87B Undertaking which included:
acknowledgement and admission that its supply of baby walkers described above contravened 65C of the TPA;
and that the Company, amongst other things:
will not in future supply any baby walkers that do not fully comply with the relevant mandatory consumer product safety and information standards that apply;
will provide the correct labelling to its manufacturer for future reference, and to all parties to whom the baby walkers were distributed;
will cause to be published at its own expense in a major daily newspaper in each State or Territory of Australia in which non-compliant baby walkers were distributed by the Company a public notice advising of the non-compliant baby walkers; and
will implement at its own expense a trade practices compliance program
Prior to January 2004, Leon Enterprises Pty Ltd trading as Envirotechnics Pest Management (Envirotechnics) made a number representations in various documents to homeowners concerning its termite barrier system installed in new homes and the warranty provided by Envirotechnics in relation to that system. The ACCC is of the view that Envirotechnics’ conduct in making those representations contravenes sections 52, 53(c), 53(f) and 53(g) of the Trade Practices Act 1974.
Envirotechnics acknowledges the ACCC’s concerns and has provided court enforceable undertakings that it will not, in trade or commerce, represent that:
its warranty (described as the New Home Termite Protection Warranty or Complete Timber Replacement Warranty) lasts for ten years, where in fact it is a twelve month warranty with an annual renewal option;
failure to arrange annual inspection of the home and renewal of the warranty will void the builders’ statutory obligations and the homeowner will bear all liability in the event of damage caused by termite attack, where that is not the case; and that
its spider treatment does not carry a warranty, where in fact it is subject to statutory warranties.
Envirotechnics has also undertaken to:
place a corrective advertisement in the West Australian;
write to warranty holders to explain the effect of its conduct; and
implement and maintain a trade practices compliance program.
The undertaking has two main elements:
the divestiture of a number of childcare centres in regional New South Wales, Victoria, Queensland and Western Australia, and
ABC not acquiring any further childcare centre licences in certain regional areas in New South Wales, Victoria and Queensland for a limited period
In June 2002 Qantas provided a section 87B undertaking to the Commission requiring the company to advertise the price of their airfares on an “All Inclusive Basis”.
A variation to this undertaking has been accepted by the Commission as recent Court decisions have made it clear that “All Inclusive Pricing” is not required under the Act.
The variation requires Qantas, when making representations as to the price of any airfare, to disclose the total price payable by a consumer as a necessary precondition to receiving the represented services (the Total Fare).
In 2003 Harris Scarfe advertised sales promotions in its regular catalogues and made claims particularly relating to “SAVE $X” and “AFTER THE SALE $X”.
In the case of some items an erroneous formula was used to calculate the alleged saving, and in others the item did not revert to a higher price as claimed, thereby exaggerating the nature of the saving during the sale period.
Harris Scarfe admitted this may have misled consumers in breach of ss.
Epic Energy (WA) Transmission Pty Ltd (EEWAT) offered this s87B undertaking in connection with the sale of the Dampier to Bunbury natural gas pipeline (DBNGP) to a consortium comprised of Alinta Limited, Alcoa of Australia Limited and Diversified Utility and Energy Trusts No 1 and No 2.
Jayco Corporation Pty Ltd has provided a section 87B undertaking to the ACCC in respect of caravan jacks, supplied both with new Jayco Caravans and as an after market item, that did not comply with the mandatory safety standard.
The company has undertaken to
identify all Jayco caravan owners
conduct a recall of all non complying jacks
provide owners with a replacement jack that complies with the mandatory standard
implement an upgraded corporate compliance program and
only supply jacks that comply with the requirements of the mandatory standard
FUJIFILM Australia Pty Ltd (formerly Hanimex Pty Ltd) undertakes that it will not, for a period of 5 years, whether by itself, its directors, servants, agents or otherwise howsoever engage in conduct whereby it makes it known to customers of Hanimex that Hanimex or any other person will not supply cameras or any other products supplied by Hanimex unless customers agree not to sell those cameras or other products at prices less than those specified by Hanimex or any other person