Privity Pty Ltd, trading as Haircare Australia - s.87B undertaking

The ACCC has accepted a section 87B undertaking from Privity Pty Ltd (ACN 007 887 729), trading as Haircare Australia, in respect of misleading and deceptive conduct made to consumers in representations that its Brazilian Blowout hair straightening products did not contain any formaldehyde when that was not the case.

Privity admits that by making the 'formaldehyde free' representations the conduct is likely to have contravened the Trade Practices Act 1974 by:
- engaging in conduct that was misleading or deceptive in contravention of section 52 of the TPA; and
- engaging in conduct in connexion with the supply of the product whereby it made a false or misleading representation concerning the compositnio of th eproduct in contravention of section 53(a) of the TPA.
The ACCC was particularly concerned about this conduct becasue formaldehyde is considered to be a dangerous chemical and consumers should not be misled about its existence in products.

To address the ACCC's concerns Privity provided the ACCC with a court-enforceable undertaking which also requires it to undergo trade practices law compliance training.