Kmart Australia Limited - s.87B undertaking

Kmart Australia supplies goods by retail to consumers. The Commission became aware that between October 1997 and April 1998 the Kmart store in Firle, South Australian, and certain other Kmart stores, made certain representations as to savings to be made on the purchase of the Black & Decker 2 Cup Espresso Maker coffee machine. The Commission alleges that this conduct was misleading and deceptive, and also constituted a false or misleading representation with respect to the price of the product. The Commission instituted proceedings in this matter in July 1998. Those proceedings have been resolved by Kmart giving undertakings to the Federal Court, consent orders and offering the ACCC an enforceable undertaking in accordance with section 87B of the Act. The orders and undertakings include Kmart conducting an internal review of its trade practices compliance program, the results of which will be provided to the ACCC, and carrying out further independent reviews of its compliance program.