Centrebuy Direct Pty Ltd - s.87B undertaking

Centrebuy Direct Pty Ltd placed advertisements in major metropolitan newspapers for a 'Muscletone' Electronic Muscle Stimulation device indicating certain health benefits could be gained without effort. It was considered that these claims were incapable of being substantiated and that consumers were being misinformed in relation to the benefits that might be gained from purchasing the product.

Centrebuy Direct Pty Ltd has accepted that it was in breach of sections 51A, 52 and 53 of the Trade Practices Act 1974 (the Act). Accordingly, Centrebuy Direct Pty Ltd provided a section 87B undertaking in the following terms:

The company will:

• a. cease current advertisements;
• b. provide refunds to consumers who believe they were misled by earlier advertisements;
• c. alter future advertisements; and
• d. undertake corrective advertising.