Craftmatic Australia Pty Ltd - s.87B undertaking

On 19 June 2009 in the Federal Court in Brisbane, Justice Logan handed down orders against Craftmatic Australia Pty Ltd (Craftmatic), a door-to-door seller of adjustable beds.

The Orders made by consent declare that Craftmatic, between August 2005 and at least 1 June 2008, in its marketing and selling techniques of adjustable beds to mainly elderly consumers, was both unconscionable in contravention of section 51AB of the Trade Practices Act 1974 (the Act), and was also misleading and deceptive in contravention of section 52 of the Act.

The Court has ordered injunctions for a period of seven years against Craftmatic, restraining it from a wide range of conduct that was found to be misleading and unconscionable.

Craftmatic has also provided a court enforceable undertaking to the ACCC that it will review its business practices and methods to ensure that they comply with the Act.

This involves Craftmatic appointing a legal practitioner with trade practices experience to review any form, script or instruction (any document) that Craftmatic intends to employ as part of its Compliance Manual.

Craftmatic will then not be able to use any document to sell beds or to train representatives to sell beds on its behalf that does not form part of the Compliance Manual.

The undertaking also provides that Craftmatic must conduct trade practices training for all new employees and retraining of existing employees in accordance with the Compliance Manual.

The undertaking has effect for a period of seven years.