Kincrome Australia Pty Ltd - s.87B undertaking

Company or individual details

  • Kincrome Australia Pty Ltd
    007 185 006

Undertaking

Kincrome Australia Pty Ltd carries on business as a wholesaler in the automotive, industrial and hardware markets.

In 2009, Kincrome caused three advertisements to be published in which it promoted certain tools for sale. Kincrome represented in those advertisements both directly and indirectly that the tools that were the subject of the advertisements were manufactured in Australia, when this was not the case. The representations were published in the April 2009 edition of The Tradie magazine, the Australian Hardware Journal, and a 16 page catalogue.

The ACCC raised concerns with Kincrome about the representations, which it considers breached section 52, 53(a) and 53(eb) of the Trade Practices Act. Kincrome accepts that the advertisements had the effect of giving an overall impression to consumers that the tools the subject of the advertisements were manufactured, or at least substantially transformed, in Australia when this was not the case.  Kincrome acknowledges that it breached sections 52, 53(a) and 53(eb) by causing the advertisements to be published.

When Kincrome became aware of the ACCC's concerns, it voluntarily put measures in place to prevent further contravening conduct and put a hold on advertisements that contained similar claims. It also recalled the catalogues, although only a small quantity could be recalled, and it provided this undertaking.

The ACCC has accepted a section 87B undertaking from Kincrome Australia Pty Ltd. Pursuant to the undertaking, Kincrome will:

  • not, in trade or commerce, represent to consumers, either directly or indirectly, that any tools sold by Kincrome are Australian, if those tools have not been manufactured or substantially transformed in Australia;
  • not create the overall impression that any tools sold by Kincrome are Australian, if those tools have not been manufactured or substantially transformed in Australia;
  • not publish, or cause to be published, any advertisements that mislead or deceive, or are likely to mislead or deceive, consumers about the country of origin of the tools sold by Kincrome;
  • establish and implement within 3 months of the undertaking coming into effect a Trade Practices Compliance Program which is designed to minimise Kincrome's risk of future breaches of sections 52 and 53 and to ensure its awareness of the responsibilities and obligations in relation to the requirements of Part V;
  • maintain and continue to implement the Trade Practices Compliance Program for a period of three years;
  • provide, at its own expense, a copy of any documents required by the Commission in accordance with the Trade Practices Compliance Program;
  • cause corrective advertisements to be published in The Tradie, the Australian Hardware Journal and, for a period of 2 months from the date the undertaking comes into effect, on Kincrome's website.

Attachments