Wesfarmers Kleenheat Gas Pty Ltd - s.87B undertaking

Company or individual details

  • Wesfarmers Kleenheat Gas Pty Ltd
    008 679 543

Undertaking

Kleenheat Gas has given the ACCC a s.87B undertaking after the ACCC expressed concerns that Kleenheat Gas engaged in misleading or deceptive conduct by varying the pricing for bulk LPG supplied to particular customers in 2002 and 2003, selected as 'Managed Monthly Accounts' or 'Quickhits', contrary to representations it made to those customers as to how their prices would move.

The ACCC had also expressed concerns to Kleenheat Gas that, in relation to certain bulk LPG supply contracts signed in 2000 and 2002, there was potential for customers to be misled as to the nature of the documents they were signing.

The s.87B undertaking provided by Kleenheat Gas forms part of an agreed resolution between the ACCC and Kleenheat Gas, together with consent orders in
the Federal Court in proceedings brought by the ACCC in relation to the pricing practices.

Kleenheat Gas has undertaken to the ACCC that it will, within 3 months of the s.87B undertaking coming into effect:

  • refund specified 'Managed Monthly Account' and 'Quickhit' customers
  • write to each of the customers to whom refunds are to be paid
  • display a website for a period of three months, accessible from Kleenheat
    Gas' home page, informing customers how LPG is priced

Kleenheat Gas has also undertaken that within 12 months of the s.87B undertaking coming into effect, it will implement procedures to inform bulk LPG customers of the nature and extent of circumstances in which Kleenheat Gas may vary the price for bulk LPG supplied under any term contract, and to ensure customers understand what they are signing.

Kleenheat Gas has undertaken to investigate any additional customer accounts that it becomes aware may have been the subject of the 'Managed Monthly Account' and 'Quickhit' practices, and refund them as appropriate. The company has also undertaken to review its Trade Practices Compliance Program.

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