Easy Meals by Flavour Makers Pty Ltd - s.87B undertaking

Company or individual details

  • Easy Meals by Flavour Makers Pty Ltd
    127 890 144

Undertaking

The Australian Competition and Consumer Commission (ACCC) has accepted a court enforceable Undertaking pursuant to section 87B of the Competition and Consumer Act 2010 (the Act) from EasyMeals by Flavour Makers Pty Ltd (EasyMeals) in relation to false or misleading representations and a failure to provide the required documents when entering into unsolicited consumer agreements, which is conduct that was likely to contravene sections 29(1)(g), 29(1)(i) and 79 of the Australian Consumer Law, contained in Schedule 2 to the Act (the ACL).

Details about the company

EasyMeals sells “pre-packaged, shelf stable meals” to customers, and promotes its products through its website (www.easymeals.net.au) and telemarketing.

EasyMeals purchases consumer contact details from third party marketing companies who use online surveys to gather those details.

In its five years of operation, EasyMeals has serviced approximately 120 000 customers and has 10 000 active customers.

Details about the conduct

From October 2014 to July 2015, during telephone calls to consumers, EasyMeals made false or misleading representations about the uses or benefits of the meals it supplies – namely that the meals are suitable for all diabetics, when, in fact, the suitability of the meals for diabetics depends upon the individual diabetic, their diet and the severity of their condition.

From July 2015 to March 2016, EasyMeals caused false or misleading representations to be made on its website and on third party websites that consumers could obtain a free EasyMeals meal by providing their contact details or entering a competition, when the consumer could only obtain a free EasyMeals meal if they purchased a meal from EasyMeals first.

From October 2014 to March 2016, EasyMeals contacted consumers, who had previously provided their details to third party marketing companies for the purpose of obtaining a free meal from EasyMeals, by telephone for the purpose of negotiating the sale of an EasyMeals meal(s) to the consumer.  On each occasion that EasyMeals negotiated the sale of an EasyMeals meal(s) to a consumer in this manner, EasyMeals entered into an unsolicited consumer agreement, and when doing so, failed to provide an agreement document that included:

  1. all the terms of the agreement;
  2. a notice on the front page of the agreement document that conspicuously and prominently informed the consumer of their right to terminate the agreement; and
  3. an accompanying notice that may be used by the consumer to terminate the agreement.

To address the ACCC’s concerns, EasyMeals provided the ACCC with a section 87B Undertaking that it will:

  1. comply with the ACL, specifically in relation to:
    1. representations about the suitability of its products for persons suffering diabetes;
    2. representations that consumers can obtain a free meal by providing EasyMeals, or a third party, their contact details if the consumer can only obtain a free meal by purchasing a meal from EasyMeals beforehand; and
    3. the documentary requirements when entering into unsolicited consumer agreements.
  2. publish a corrective notice on its website indicating that it has contravened sections 29(1)(g), 29(1)(i) and 79 of the ACL; and
  3. implement an ACL compliance program.