The Australian Competition and Consumer Commission has instituted civil proceedings against Craftmatic Australia Pty Ltd, its former managing director, Mr Ashley Francis Day, and former sales representative, Mr Wayne Lugg.
Craftmatic markets and sells adjustable beds in Queensland, New South Wales, Victoria, Western Australia and South Australia through in-home sales.
The ACCC alleges that since 2005, certain sales and marketing methods employed by Craftmatic were unconscionable, in breach of section 51AB of the Trade Practices Act 1974, and misleading or deceptive, in contravention of section 52.
It is alleged that Craftmatic's in-home sales method consisted of unfair and misleading sales tactics designed to unduly influence or pressure elderly customers.
Examples of the conduct include Craftmatic:
- misrepresenting the duration of the in-home sales presentation
- misrepresenting the existence of 'special prices' or discounts to customers, and
- sales representatives being reluctant to leave the customers home without achieving a sale.
The ACCC is seeking interlocutory and final relief, including injunctions.
The matter is listed in the Federal Court, Brisbane for a directions hearing on Friday, 1 May 2009.