Carpet One Australasia Limited - s.87B undertaking

Company or individual details

  • Carpet One Australasia Limited
    068 532 794

Undertaking

Between April and October 2000 Carpet One Australasia Limited produced three catalogues for its Carpet One retail store members. Two catalogues had next to advertised products a price with the words 'Recommended Retail Price' and another lower price, representing the sale price, with the word 'Now' next to it. The third catalogue had next to the advertised products a price with the words 'Retail Price' and another lower price, representing the sale price, with the words 'Right Price' next to it. The prices represented as a Recommended Retail Price or a Retail Price were the recommended retail prices which Carpet One Australasia suggested to its retail store members. Most Carpet One stores had previously sold the advertised products for less than the prices represented as a Recommended Retail Price of a Retail Price. Two catalogues also included the representation '12 months interest free' on the front cover with a fine print qualification on the back page that the offer was only on selected items.

Carpet One Australasia Limited has provided undertakings to the Commission that:

  • its future advertising will not refer to a price in connection with a product as 'Recommended Retail Price' without sufficient qualification when that price is not the price recommended by the manufacturer or importer of that product;
  • its future advertising will not compare the price at which a product is being offered for sale with another price referred to as a 'Recommended Retail Price' or a 'Retail Price' when the latter price is not the price at which the product is commonly offered for sale in the marketplace;
  • its future advertising that refers to an 'interest free offer' that only applies to some items promoted in the advertising will prominently disclose that the 'interest free offer' only applies to some of the advertised products;
  • it will publish a corrective notice in its next advertising catalogue;
  • it will arrange for publication in a trade journal an article regarding the background to the provision of the undertakings and the ways in which two-price advertising could breach the TPA; and
  • it will implement a trade practices corporate compliance program which will be independently audited for three years.

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