Smaller businesses are not immune from the ACCC
Apr 18, 2016So, as a smaller business, do you think you are immune from the wrath of the ACCC? Think again.
In recent months, the ACCC has been successful with the following enforcement action:
- Omniblend Pty Ltd – an online retailer of kitchen applicances – found guilty of resale price maintenance in the Federal Court (penalty of $17,500)
- Conroys Pty Ltd – a bacon supplier – given an infringement notice for making a false and misleading representation regarding the country of origin of its bacon products (labelled as a product of Australia, when it was in fact made from imported pig meat) ($10,200)
- Kailis Bros Pty Ltd – manufacturer of frozen prawn meat – were issued with an infringement notice alleging false and misleading conduct by suggesting that the prawns were caught, processed and packaged in Australia, when they were in fact packed and processed in Thailand ($10,800)
- A Whistle & Co (1979) Pty Ltd – an Electrodry franchisor – engaged in false and misleading conduct by publishing false testimonials on its website (total penalties of $215,000)
- Clews Holdings Pty Ltd and D Burnz Investments Pty Ltd – retailers of adjustable beds and mobility products – were both issued infringement notices alleging false and misleading representations, by suggesting that the products were approved by the Therapeutic Goods Administration (when they were not) and that they complied with the relevant Australian Standard (when no such standard exists) (penalty of $20,400 each)
- Clinica Internationale Pty Ltd and Mr Radovan Montague – offered programs for migrants seeking permanent residency – found guilty of false and misleading representations and unconscionable conduct (penalties totalling $1,025,000)
- Derodi Pty Ltd and Holland Farms Pty Ltd (trading as Free Range Egg Farms) – found guilty of false and misleading representations regarding its claims of its eggs being “free range” (penalty of $300,000)
So if you are concerned that your packaging and/or marketing material may convey a false or misleading representation about your product/service, or if you are concerned about the sales tactics used to sell your product/service, seek legal advice.
Contact the Shire Legal team if you have any questions.
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