ACCC demands honest product claims

By on

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.

Tags:

Most Read Articles

You must be a registered member of iTnews to post a comment.
| Register

Poll

How should the costs of Australia's piracy scheme be split?
Rights holders should foot the whole bill
50/50
ISPs should foot the whole bill
Government should chip in a bit
Other
Flash is heading towards its grave, and that's...
Great! Good riddance
Sad! Flash had some good qualities
Irrelevant. I don't care
What's Flash?
View poll archive

Whitepapers from our sponsors

What will the stadium of the future look like?
What will the stadium of the future look like?
New technology adoption is pushing enterprise networks to breaking point
New technology adoption is pushing enterprise networks to breaking point
Gartner names IBM a 'Leader' for Disaster Recovery as a Service
Gartner names IBM a 'Leader' for Disaster Recovery as a Service
The next era of business continuity: Are you ready for an always-on world?
The next era of business continuity: Are you ready for an always-on world?

Log In

Username:
Password:
|  Forgot your password?