Metricon Homes Pty Ltd - s.87B undertaking

Metricon offered an undertaking to the ACCC as a result of an investigation into an allegation that Metricon sales staff were making misleading representations about the effect of GST on building costs.

The Commission was alerted to a number of increases to prices of building work from October 1999 to July 2000, which would take into account the introduction of the GST. Complainants further alleged they were informed by Metricon representatives that the increase for GST purposes would apply even where the construction of the dwelling was to be completed by 1 July 2000.

Metricon undertakes to cease and desist the making of misleading representations and to a trade practices compliance program. The program is subject to an annual review by an independent auditor for a period of three years after instigation.