ACCC demands honest product claims

 

The federal court has issued orders to a company for allegedly misrepresenting that a mobile phone accessory reduced radiation.

The federal court has issued orders to a company for allegedly misrepresenting that a mobile phone accessory reduced radiation.

Graeme Samuel, chairman at the Australian Competition and Consumer Commission (ACCC), said that consumers often relied on claims made by businesses about the efficacy of their products. "Business must, in turn, be honest," Samuel said. "The ACCC will not allow business to mislead consumers on matters potentially affecting their health".

Federal Court orders have been made by consent of the parties against Phoneflasher.com Pty Ltd, its former director Jimeale Jorgensen, and its majority shareholder and agent, Alan Jorgensen. The orders relate to false and misleading representations about the Phoneflasher mobile phone accessory.

Samuel said that Phoneflasher.com had supplied Phoneflashers to various retailers throughout Australia, with claims that they reduced radiation and because of this had associated health benefits.

He said the claims were on the packaging and displays, as well as in promotional material and on the Phoneflasher.com website.

According to a statement from the ACCC, the watchdog alleged that the representations were false and misleading, breaching some sections of the Trade Practices Act.

Among the declarations and orders that the Federal Court made with the consent of the parties was that Phoneflasher.com write to each retail outlet it had supplied with the Phoneflashers. This was to advise the retail outlets of the Federal Court's orders, and to request that they display a consumer notice near where the Phoneflasher was displayed for sale.

It also had to post a similar notice in an automatically-generated popup window or message box on its www.phoneflasher.com website, and on any other website being used by Phoneflasher.com to promote the Phoneflasher, for six months.


 
 
 
Top Stories
Content, cost & constant innovation: How Foxtel plans to take on Netflix
Nell Payne inhabits the “brave new world of blue strings and networking”. Just don't ask her to put a TV screen on your microwave.
 
Sending in the drones
Margins are getting tighter in the industrial services industry, so Transfield Services' Stephen Phillips looks offshore - and to the skies - for the solutions he needs to keep pace.
 
Westpac fires starting pistol on core banking upgrade
St George readies itself for move to Celeriti.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest articles on BIT Latest Articles from BIT
Microsoft launches Office for Android preview
May 22, 2015
Microsoft has launched a preview of Office for Android smartphones. Pre-release versions of ...
Microsoft is working on an iOS email chat feature called Flow
May 22, 2015
Microsoft is working on a new chat app, but at the moment we know more about what we DON'T know, ...
Windows 10 free upgrade: Microsoft details who gets what
May 22, 2015
Microsoft was meant to be streamlining its OS with Windows 10, so why is upgrading so confusing? ...
Windows 10 has an edition to suit everyone's needs
May 15, 2015
Microsoft unveils a mind-melting six editions of Windows 10 ahead of its Winter 2015 launch. ...
Firefox 38 FINAL released, debuts new tab-based preferences
May 13, 2015
Mozilla has unveiled the latest version of Firefox 38.0 FINAL for desktop, with Firefox for ...
Latest Comments
Polls
Should Optus make a bid for iiNet?

   |   View results
Yes
  44%
 
No
  56%
TOTAL VOTES: 519

Vote