Kerandis Proprietary Limited - s.87B undertaking

Company or individual details

  • Kerandis Proprietary Limited
    005 237 516

Undertaking

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. Kerandis has acknowledged that its conduct is likely to have contravened sections 52 and 53(e) of the TPA.

Kerandis has provided court enforceable undertakings to the ACCC on the following terms:

  • it will refrain from using comparative two-price representations in the manner described above;
  • its directors, agents and employees will ensure that all future advertising and other forms of promotion comply with part V of the TPA and;
  • that it will establish and implement a Trade Practices Compliance Program to reduce the risk of engaging in any potentially misleading conduct in the future.

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