Repco Limited - s.87B undertaking

In September 2005 Repco Limited advertised a '$1 Million Sizzling Sound Sellout' by circulating 3.9 million catalogues to consumers' letterboxes and via in store distribution stands.

The sale was advertised as commencing on 8 September 2005 and concluding on 25 September 2005. Five of the products advertised in the catalogue were advertised at a discount between 66% and 92% off their original pre-sale price. Four of these items were advertised on the front page of the catalogue

Over one third of Repco's 290 stores Australia wide did not have any of the five products available for sale during any part of the sale period. Of those stores that did hold stock, most did not have any stock available to customers after the first day of the sale

Having regard to the nature and extent of the advertising and the limited amount of stock available, the ACCC considers that Repco's catalogue advertising risked contravening:

• section 52 of the TPA, the prohibition against misleading and deceptive conduct; and
• section 56 of the TPA, the prohibition against bait advertising

The ACCC has accepted a Court enforceable undertaking from Repco including:

• an undertaking that Repco will maintain and continue to implement a trade practices compliance program for 3 years and review that program and report to the ACCC every 18 months on those reviews;
• an undertaking to place a public disclosure notice in store acknowledging insufficient stock was held by it during the sale and apologising for any inconvenience to persons who responded to Repco's advertisements who were unable to purchase the advertised stock;
• an undertaking to publish an article in the Australian Automotive Aftermarket Association Magazine focussing on the lessons learnt by Repco as a result of the concerns raised by the ACCC; and
• an undertaking to provide alternative stock or a $100 Repco Gift Voucher to those consumers who made written complaints to either the ACCC or to Repco prior to the Undertaking and who have not otherwise received compensation from Repco