Lisat Holdings Pty Ltd - s.87B undertaking

Lisat Holdings Pty Ltd (Lisat Holdings) operates 8 leather lounge retail outlets across Queensland and NSW under the name of Rubelli Designs.

Lisat Holdings advertised extensively from at least January 2007 to March 2008, placing up to 35 advertisements per month in catalogues, newspapers, radio and television across QLD and NSW. Comparative two-price representations were a key feature of Rubelli’s advertisements, in the form of: “Was $3790 Now $2799”; “RRP $3799 Now $2499”; and “RRP $3699 Rubelli’s RRP $3099 Now $2699”. Lisat Holdings conceded that it rarely sells furniture items at the RRP, and acknowledged that its conduct is likely to have contravened sections 52 and 53(e) of the TPA.

Lisat Holdings has provided court enforceable undertakings to the ACCC on the following terms:

• it will refrain from using comparative two-price representations where goods have not previously been offered for sale at the higher price for a reasonable period of time prior to the period of commencement of the discount;
• it will display an information notice in all stores for a period of 6 weeks;
• its directors, agents and employees will ensure that all future advertising and other forms of promotion comply with Part V of the TPA; and
• it will establish and implement a Trade Practices Compliance Program to reduce the risk of engaging in any potentially misleading conduct in the future.