Rural Network Pty Ltd - s.87B undertaking

Rural Network Pty Ltd is a Tweed Heads based company offering membership services to the public for introduction services.

The ACCC instituted proceedings against Rural Network and its Director Leanne McDonald alleging they:

• represented that a woman in a higher membership category had been identified for a member, and that the member would be introduced to that person when they paid an additional sum to be placed in the same higher category, when no such woman had been identified;
• represented that a member would be given access to other member’s profiles in a special section of the website by paying an additional sum when in fact there was no such section of the website;
• represented that a liability had been incurred by a member and that further introduction services could not be provided until that amount was paid when this was not the case; and
• represented that a discount on the membership fee given to the member when they joined was given in error or without required approval and that further introduction services could not be provided until that amount was paid.

In resolving the court proceedings Rural Network and Ms McDonald have consented to court orders for declarations, injunctions and cost and have also undertaken to:

• provide refunds to former members totalling $118,476;
• provide copies of Court orders made in the Federal Court to certain existing and new members;
• attend Trade Practices training; and
• develop a complaints handling system.

Update:

In July 2008 the ACCC took further Court proceedings to have this Undertaking enforced, following non-compliance. Declarations were made, and injunctions ordered for compliance with the Undertaking, by way of consent of the parties.