This is the latest in a monthly series detailing developments in competition and consumer law in
This article covers events which occurred in
JUDGEMENTS
Federal Court orders record
The Federal Court ordered
Geowash ordered to pay
The Federal Court has ordered the former carwash franchisor Geowash and its director and franchising manager to pay penalties totalling
NEW PROCEEDINGS
Oscar Wylee sued for misleading charitable donations claims
The ACCC has commenced proceedings against eyewear company Oscar Wylee regarding its advertisements which stated that every time a consumer bought a pair of glasses, it would donate a pair to someone in need:
However, according to the ACCC, Oscar Wylee only donated 3,000 glasses over a period in which it sold over 320,000 glasses. The ACCC also claims that Oscar Wylee represented between 2014 and 2018 that it had partnered with
ACCC commences proceedings against Superfone for misleading telemarketing
The ACCC has commenced proceedings against Superfone, a telecommunications provider, alleging that Superfone made false or misleading representations and breached provisions regarding unsolicited consumer agreements as a result of it making unsolicited telemarketing calls. The ACCC claims that Superfone falsely represented during marketing calls that its services were endorsed by existing telecommunications providers. The ACCC also claims that Superfone's telemarketers told consumers that they could not terminate their contract without penalty, when in fact consumers who enter into unsolicited consumer agreements have a ten-day cooling-off period under the ACL. The ACCC media release, including the originating court documents, can be viewed here.
LEGISLATIVE AND OTHER DEVELOPMENTS
Penalties for misleading advertising
Several companies have agreed to pay pecuniary penalties for false or misleading advertising following infringement notices issued by the ACCC:
- Snap Send Solve, an Australian company which runs an app that allows users to report issues to local councils, has agreed to pay a penalty of
$12,600 for false or misleading advertising following an infringement notice from the ACCC. The ACCC alleged that Snap Send Solve falsely represented that photographs submitted by users would be sent to local councils, when in fact the company withheld photographs from local councils which did not pay a subscription fee to the company. The ACCC media release can be viewed here. -
4WD Supacentre, a four-wheel drive and outdoors accessories store, has agreed to pay
$63,000 in penalties for misleading consumers about its 'was/now' pricing. The ACCC issued infringement notices in relation to Supacentre's advertising of sales prices by reference to higher 'was' prices when the products had not been sold at the 'was' price during the previous three months. For example, Supacentre advertised a product with a 'was' price of$279 , when in fact it had not been advertised at a price higher than$104 during the previous three months. The ACCC media release can be viewed here. Grays Ecommerce Group ,Berwick Motor Group , and HG Innovations have agreed to pay penalties totaling$63,000 for selling or advertising vehicles which were the subject of an active compulsory recall notice for vehicles fitted with defective Takata airbags. The ACCC alleged that selling or advertising these vehicles amounted to a false representation that they were of salable quality, which was not the case. The ACCC media release can be viewed here.Kayo Sports , a sports streaming service, has paid a penalty of$12,600 as a result of an infringement notice issued by the ACCC alleging that Kayo had misled consumers about their eligibility to receive a discounted subscription offer. According to the ACCC, the details of the offer did not adequately disclose that it was only available to consumers who had not previously used Kayo. The ACCC media release can be viewed here.
ACCC releases report into customer loyalty schemes
The ACCC has released its final report into customer loyalty schemes. The report includes recommendations that loyalty schemes improve communication with customers, improve their data protection practices and stop automatically linking credit cards with loyalty scheme profiles. The report also recommends simple changes such as alerting members of when points are about to expire. Competition and consumer issues arising from customer loyalty schemes are one of the ACCC's current priorities.
New consumer code for providers of solar and energy storage systems
The ACCC has released a new authorised code which improves protections for consumers of products such as solar generation systems, energy storage systems, electrical vehicle storage charging and other energy products and services. Signatories to the New Energy Tech Consumer Code must comply with the minimum standard obligation of good practice and consumer protection, including avoiding high pressure sales tactics, being clear and transparent in advertising and educating consumers about their rights. The ACCC media release, and more information on the Code, can be found here.
Government response to the ACCC's Digital Platform Inquiry
The Australian Government has provided a response to the ACCC's Digital Platforms Inquiry, which was released in
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