Recently, the ACCC has taken action against a number of
door-to-door sales businesses. First it was AGL, then Neighbourhood
Energy and EnergyAustralia and now Craftmatic.
Craftmatic makes adjustable beds primarily sold to elderly
customers through in-home sales presentations. The door-to-door
salesmen misrepresented the value of Craftmatic's 'lifetime
warranty' and the price of beds on a payment plans.
This isn't the first time the ACCC has come after Craftmatic
and their beds; in 2009 the company admitted that they made
misleading statements and used sales methods to unduly influence
This time around Craftmatic has paid infringement notice
penalties totalling $19,800.00.
Everyone knows that if you advertise your goods as made in, say,
Italy, then they need to actually come from Italy, right? Well not
Victorian butcher Kingsland Meatworks & Cellars used the
words "King Island" in the store's logo, domain name,
business names, and referred to King Island on its website and
signs displayed outside its shop, and published newspaper ads about
King Island to promote its beef.
But the beef in the shop wasn't actually from King Island,
so the butcher got slapped on the rump with a $50,000 fine for
making misleading statements about its origin.
Get it while it's hot
Between 2008 and 2010 Zamel's advertised jewellery on its
website and catalogues using WAS/NOW pricing. But Zamel's had
never sold the some of the jewellery at the "WAS" price
or only a very limited quantity at that price before the offering
it the "NOW" price. Misleading much?
This is classic behaviour which just begs for ACCC intervention.
In fact, in 2008 Zamel's (under different ownership) was found
guilty of engaging in the same misleading conduct. Unfortunately,
this did not serve as cautionary tale. Zamel's paying for it
now with a $50,000 penalty
We do not disclaim anything about this article. We're
quite proud of it really.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The Sportscraft refunds and returns policy limitations went beyond consumer's rights under the Australian Consumer Law.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).