Custom Security Services Pty Ltd - s.87B undertaking

Custom Security Services Pty Ltd ('CSS') commenced an upgrade to its security system in March 2001 to provide opening and closing reports to all customers on a daily basis. The upgrade was generally undertaken without prior consultation, and invoices were issued to customers to cover the cost of the upgrade. Subsequent letters from CSS to its customers have failed to disclose the full cost of the upgrade and contained representations that were likely to be misleading. Therefore it is alleged that CSS breached sections 52, 53 and 64 of the Trade Practices Act 1974.

Following ACCC investigations CSS entered into section 87B undertakings with the Commission, to address the concerns raised, whereby CSS agrees to:

• a) acknowledge that the conduct may have breached the Trade Practices Act 1974;
• b) immediately cease making demands for payment of security system upgrades;
• c) write to its customers offering refunds (including telephone charges) and full disclosure; and
• d) implement a Trade Practices Compliance program.