False advertising

Date: 1 September 2011

On 26 July 2010 the ACCC issued an infringement notice to ACA Constructions Pty Ltd, trading as Roll Away Shutters. The ACCC issued the infringement notice after forming the view that Roll Away Shutters was falsely claiming on its website that it was a member of the Master Builders Association and the Housing Industry Association.

An infringement notice is one of a number of new powers available to the ACCC after the introduction of the first part of the Australian Consumer Law in April this year.

Roll Away Shutters paid the infringement notice penalty of $6,600. No further action will be taken by the ACCC in relation to these claims.

This outcome should serve as a warning to others thinking of falsely representing they have a sponsorship, approval or affiliation with an organisation. Membership of an industry association often signifies that a business has certain qualifications and if there is a problem with service provided by the business, the industry association may assist a consumer to resolve their dispute. The ACCC considers that building improvements and renovations are a significant expense and membership of industry associations may be a factor which influences consumers and businesses when choosing a certain company.

http://www.becir.com.au/component/content/article/943-becir-news/2572-accc-small-business-information-network-update.html