GM Holden Ltd - s.87B undertaking

On 21 October 2005 GM Holden Ltd launched the Holden Employee Pricing promotion. The advertisements appeared nationally through television, in the press and online.

The advertisements contained the headline statement "YOU PAY WHAT WE PAY". The body copy of the advertisements stated "Holden employee pricing for all Australians. For the first time ever, all Australians can enjoy the financial benefit of Holden Employee Pricing. Available across a selection of the Holden range for a limited time."

The advertisements contained the disclaimer: "Offer ends 31/12/05 or while stocks last. Includes vehicles with a compliance plate prior to July 1 2005. Excludes options and accessories. Standard dealer delivery and Gov't charges apply. Not available with any other pricing or special allowance."

Holden employees receive a discount on factory fitted options and accessories and a discounted dealer delivery fee and from 21 October 2005 until 9 November 2005 they also received a special discount on selected vehicles. None of these financial benefits were made available to consumers through the promotion.

The ACCC formed the view the advertisements were misleading because GM Holden Ltd did not provide members of the public with the discount on factory fitted options and accessories, the discounted dealer delivery fee or the special discount on selected vehicles. The ACCC also formed the view the misleading impression given by the headline statement could not be cured by the further information given in the advertisements, particularly in the disclaimer.

The ACCC has accepted a court enforceable undertaking from GM Holden that it will:

• provide written notice to each person who purchased a vehicle subject to the special discount offering them the opportunity to return the vehicle for a full refund;
• endeavour to comply with any industry standards developed by the ACCC that are generally adopted by the industry;
• make improvements to its trade practices compliance program; and
• engage an independent third party to review its trade practices compliance program by 30 June 2007 and again by 30 December 2008 and report to the ACCC and to GM Holden Ltd's Board after each review.