Advanced Hair Studios (Franchising) Pty Ltd - s.87B undertaking

A customer of Advanced Hair Studios store alleged that a staff member represented that the prices of hair replacement units would increase by 10% as of 1 July 2000 because of the new tax system. The Commission was concerned that the representation was misleading or false as before July 1 2000 hair replacement units were subject to 22% sale tax unless item 86 of schedule 1 of the Sales Tax Exemption and Classifications) Act 1992 applied.

The franchise, Advanced Hair (Franchising) Pty Ltd, promptly undertook to cease making any such representation and wrote to each of the franchisees and wrote to all customers to clarify the effect of the new tax system on the prices of hair replacement units. It has also agreed to implement a Trade Practices Compliance program.