Retail Food Group Limited - s.87B undertaking

The ACCC has accepted a section 87B from Retail Food Group Limited, owner of Brumby’s Bakeries Pty Ltd (Brumby’s), in respect of the following statement made by the Brumby’s managing director on 8 June 2012 in a newsletter distributed to approximately 250 Brumby’s franchisees:

“... We are doing an RRP review at present which is projected to be in line with CPI, but take an opportunity to make some moves in June and July, let the Carbon tax take the blame, after all your costs will be going up due to it.”

Retail Food Group acknowledges that the carbon price statement may have had the effect of inducing or encouraging Brumby’s franchisees to make representations to retail customers linking product price increases to the carbon price without a reasonable basis.

The ACCC was particularly concerned about this conduct because such representations by the franchisees may breach false, misleading and deceptive conduct provisions of the Australian Consumer Law (ACL), specifically sections 18 and 29(1)(i) of the ACL, schedule 2 of the Act.
 
To address the ACCC’s concerns, Retail Food Group provided the ACCC with a court-enforceable undertaking.