Video Ezy Australasia Pty Ltd - s.87B undertaking

Company or individual details

  • Video Ezy Australasia Pty Ltd
    073 076 294

Undertaking

Video Ezy has given a court enforceable undertaking under section 87B of the Trade Practices Act 1974 to the ACCC, after it raised concern that the overall impression created by "price guarantees” in its television advertisements were likely to have breached section 52 and 53(e) of the Trade Practices Act 1974.

In October 2007, Video Ezy changed its television commercials to include the statement "Cheapest price in Australia, guaranteed”, which featured prominently in its advertisements.

This statement was either qualified in fine print by “Or we’ll beat any lower advertised price” (the “qualification”), or not at all. Additionally, Video Ezy has informed the ACCC, that variations of this statement without the qualification were included in text messages sent to over 100,000 people. The overall impression is likely to have implied that Video Ezy’s price was the lowest price in Australia.

The ACCC found that 5 titles, including “Harry Potter and the Order of the Phoenix”, were sold by competitors for less than the price advertised on television by Video Ezy from November through to December 2007.

Video Ezy has undertaken to:

  • not represent that the advertised price for the retail of a DVD title is the “cheapest price in Australia, guaranteed” without including the qualification, “or we’ll beat any lower advertised price by $1”. In the case of oral statements, the qualification must be made immediately after the first statement, and in the case of text, the two statements must appear simultaneously.
  • ensure that all national advertising is approved by its Compliance Officer.
  • review and implement necessary changes to its Trade Practices compliance program.
  • refund the difference between Video Ezy’s advertised price and the lowest advertised price identified in Australia, for the 5 titles.
  • provide corrective notices through direct mail, catalogues, the in-store advertisements and magazines, and its website, and to send a corrective text to the people who received advertising via text. 

Attachments