Gateway Pty Ltd - s.87B undertaking

In May 2000, Gateway Pty Ltd (Gateway Computers) ran a newspaper advertising campaign in which Gateway represented "Save up to $699 before the GST". The Commission was concerned that this advertisement may have misled consumers as to the likely effect of the New Tax System on the price of computers following the abolition of the 22% WST and the introduction of the 10% GST. It was the Commission's expectation that the price of computers following the introduction of the New Tax System were likely to decrease by between 3.6 and 4.6%.

Gateway has provided the Commission with a section 87B undertaking which provides:

• that Gateway will not advertise its products in such a way that consumers may be misled or deceived as to the application or effect of the New Tax System changes on the price of products supplied by Gateway;
• that with respect to the Essential 500SEC, Performance 700 and Solo 2150LS computers, Gateway shall refund the excess amount to consumers who purchased computers at the May advertised price based upon the GST inclusive selling price immediately following the introduction of the New Tax System; and
• that Gateway shall implement a Trade Practices Compliance program within three months of providing this undertaking.