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.