Nuance Group (Australia) Pty Ltd - s.87B undertaking

The Nuance Group (Australia) Pty Ltd (the Nuance Group), is the company carrying on the retail business of Downtown Duty Free (DDF) and City International Duty Free (CIDF). CIDF and DDF are national retailers, which operate 25 stores across mainland Australia.

It is alleged that the Nuance Group made misleading representations in advertisements during the period between 18 March and 30 April 2002 (the Sale Period) in DDF and CIDF catalogues as to:

• a) the quantum of claimed price savings in their two price advertising in contravention of sections 52 and 53(e) of the Trade Practices Act (1974) (the Act); and
• b) the exclusivity of their sale offers in contravention of sections 52 and 53(a) of the Act.

The Commission is concerned that the Nuance Group may have contravened sections 52 and 53(e) of the Act, as they have provided the Commission with information which indicates that the sale items were not sold at the higher prices claimed in the advertisements and catalogues immediately prior to the Sale Period.

The Commission is concerned that the Nuance Group may have contravened sections 52 and 53(a) of the Act, as the offers were identical in both CIDF and DDF catalogues, and were therefore not exclusive to either party, therefore misrepresenting that these products were of a particular standard or quality.

The Nuance Group has offered court-enforceable undertakings to the Commission in which the Nuance Group:

• admits that the conduct constituted contraventions of sections 52, 53(a) and 53(e) of the Act;
• will not represent that particular price savings are available on products when the products have not been offered at the higher price for a reasonable period before the sale;
• will not represent that products are exclusive to their stores when this is not so;
• will publish corrective newspaper advertisements and place corrective notices in-store for three weeks;
• will offer full refunds to consumers who claim to have been misled by the representations; and
• will develop and implement a trade practices compliance program.