Relyt Pty Ltd - s.87B undertaking

For a two-week period in early September 1999, a television advertisement was broadcast on a number of occasions on a Townsville television station. The advertisement was placed by a representative of Relyt P/L and S & S Thomson Investments P/L, the corporate owners of the used vehicle dealer, Dollar Wheels. The advertisements were promoted under the registered trademark of the Q.P.R. Auto Group.

The advertisement promoted the theme of "beat the taxman" referring to the effect the introduction of the Goods and Services Tax would have on the price of used vehicles. The Australian Competition and Consumer Commission formed the view that the advertisement gave the impression that the price of used vehicle will increase as a result of the introduction of the GST.

However the ACCC believes that the net effect of the New Tax System Changes is, in general, likely to be an overall reduction in the price of used vehicles. As such, the ACCC formed the view that Relyt P/L and S & S Thomson Investments P/L may have engaged in misleading conduct in contravention of sections 52 and 53(e) of the Trade Practices Act 1974.

In the Undertaking Relyt P/L and S & S Thomson Investments P/L have:

• Provided undertakings as to future conduct;
• Undertaken to publish corrective advertisements; and

Undertaken to institute trade practices compliance programs.