Auslinx Pty Ltd - s.87B undertaking

Auslinx Pty Ltd supplied to retail stores about 28000 units of a particular modem. The modem and its packaging had printed on them the 'A-Tick' mark. Under the Labelling (Customer Equipment and Cabling) Notice 1997 No.2 ("the Notice") issued by the Australian Communications Authority under the Telecommunications Act 1997, before the 'A-Tick' can be applied to a modem the Australian manufacturer or importer of the modem must have obtained certain information to show that the modem meets the requirements of standards ACA TS001-1997 and ACA TS002-1997. The Notice requires the packaging of modems which don't comply with these standards to be marked with a different mark and a statement warning consumers not to connect the equipment to a carriage service provider's telecommunications network. The modem did not comply with ACA TS001-1997. The Commission was of the view that the appearance of the 'A-Tick' mark on the modem and its packaging may mislead consumers into believing that the modem complied with ACA TS001-1997 and was suitable for connection to the telecommunications network. The Commission therefore considered that Auslinx had engaged in misleading conduct in contravention of sections 52, 53(a), 53(c), and 55 of the Trade Practices Act 1974. Auslinx provided undertakings to cease supplying modems marked with an 'A-Tick' without a test report verifying that they comply with ACA TS001-1997; to place advertisements in daily newspapers advising consumers of the problem with the modem and offering purchasers of the modem a full refund and to request that its customers return the modems.