JB Hi-Fi Group Pty Ltd - s.87B undertaking

JB Hi-Fi Group Pty Ltd (JB Hi-Fi) is a retailer of home entertainment products. Between 28 February 2006 and 10 March 2006 JB Hi-Fi distributed a catalogue that included 45 products advertised at a discount that was represented as saving a nominated sum of money off each product's recommended retail price (RRP).

The ACCC was concerned the catalogue may have misled or deceived consumers into believing that JB Hi-Fi or its competitors operating within the same geographical markets as its stores had, within a reasonable period of time prior to the distribution of the catalogue, sold in reasonable quantities the products at the RRP, when this may not, in fact, have been the case. If so, such conduct may have breached sections 52, 53(a) and 53(e) of the TPA.

While JB Hi-Fi explained the basis upon which it used the RRP, the ACCC remained concerned about the conduct. In resolution to the ACCC's concerns, and on a without admissions basis, JB Hi-Fi offered to give an Undertaking to the ACCC pursuant to Section 87B of the TPA.

JB Hi-Fi has undertaken not to advertise for sale any product at a discount off the RRP unless the product has been advertised and sold at the RRP or equivalent by either JB Hi-Fi or its competitors operating within the same geographical markets, in reasonable quantities, for a reasonable period of time and within a reasonable period of the date of the advertising. JB Hi-Fi is required to maintain records to support such advertising claims.

JB Hi-Fi has also undertaken to establish and implement a trade practices compliance program designed to ensure its awareness of the responsibilities and obligations in relation to the requirements of sections 52, 53(a) and 53(e) of the TPA, and to minimise the risk of future breaches.