ACCC response to Repco complaint

Submitted: Friday, Sep 16, 2005 at 17:33
ThreadID: 26509 Views:4912 Replies:8 FollowUps:4
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Hi all who have been following the REPCO bait advertising threads.

It appears the ACCC agrees with us. If they get enough complaints they will act.

Their email reply to my complaint below.

By the way I finally got to talk to someone at Shepparton store. They were very cagey about it but they went as far as to say that they "might have had one" portable DVD unit, but that they "probably" didn't have the Blaupunkt unit.

Apparently there were "definately about four" catalog items that they didn't have in stock - and management would not allow them to order stock in anticipation of sales requirements.

If you read the ACCC letter that pretty much locks in A) Bait advertising thanks Eddie.

Dave

Pasted from Email:
Dear Mr Jones


Thank you for your email of 10 September 2005 to the Australian Competition & Consumer Commission (the ACCC) regarding Repco Ltd.



By way of background, and before addressing the specific issue you have raised, it may be appropriate to outline briefly the role of the ACCC and the scope of the Trade Practices Act 1974 (Cth) (TPA). The ACCC is an independent statutory authority responsible for ensuring compliance with the TPA. The main purpose of the TPA is to promote competition and efficiency in markets within Australia, and to protect consumers and businesses from unlawful anti-competitive and unfair market practices. The ACCC's role includes fostering fair and informed markets by seeking compliance with the TPA.



Section 52 of the TPA prohibits corporations in trade or commerce from engaging in misleading or deceptive conduct or conduct that is likely to mislead or deceive. Section 56 prohibits corporations from engaging in the practice of ‘bait advertising’. That is, businesses are prohibited from advertising products at a particular price, if there are reasonable grounds for believing they will not be able to offer those goods at that price for a period that is, and in quantities that are, reasonable having regard to the nature of the advertisement.. What is reasonable will depend on the particular circumstances, including the market in which the goods are sold and the nature of the advertisement. The conduct that you describe may be at risk of breaching this provision of the TPA. For this reason I have lodged details of your complaint in our national database.



The information obtained from individual complainants is used to establish a pattern of behaviour by a particular trader or in a particular industry. The ACCC’s consumer protection focus is on national issues and those localised issues that have wider public interest implications. The ACCC would usually pursue this type of complaint only where there is significant detriment, generally evidenced either by the number of complaints it receives and/or the magnitude of any loss suffered by consumers. At this stage the ACCC is not in a position to confirm what, if any, action may be taken on this matter. However, in the meantime this information will be used in the context of our ongoing monitoring.



In this instance, if you would like to pursue the matter further, we would suggest that you approach Repco Ltd and attempt to negotiate an acceptable remedy with them. If this fails, you may wish to put your complaint in writing to Repco Ltd, advising them of the problem and your desired remedy. Provide them with a date by which to contact you with an appropriate remedy before you take the matter further.



The conduct about which you complain may also contravene the Fair Trading Act in Victoria. For conduct occurring within your state the ACCC would generally refer consumers to the Consumer Affairs Victoria (Telephone 1300 558 181 or at www.consumer.vic.gov.au ) if you have suffered any loss you may be able to recover that loss in a Small Claims Tribunal. Consumer Affairs Victoria can also provide details about this procedure.



Thank you for contacting the ACCC and I hope that the above information is of some assistance.



Yours sincerely



Megan

ACCC Infocentre

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Reply By: cabbageoz - Friday, Sep 16, 2005 at 18:07

Friday, Sep 16, 2005 at 18:07
R rip
E every
P poor
C ****
O off
AnswerID: 130445

Reply By: Member - David 0- Friday, Sep 16, 2005 at 18:37

Friday, Sep 16, 2005 at 18:37
Well done Dave

It is only through efforts like this, that we can all keep the bastrds out there honest
AnswerID: 130446

Reply By: Member - Ian B - Friday, Sep 16, 2005 at 18:42

Friday, Sep 16, 2005 at 18:42
What about going to " A Current Affair? "

Hell, they can show us all driving up to a Repco store in out 4 x 4's, and walking in, complaining about bait advertising, then all driving away again, all without a single pedestrian being harmed in the making of the segment....
AnswerID: 130448

Follow Up By: BenSpoon - Saturday, Sep 17, 2005 at 00:53

Saturday, Sep 17, 2005 at 00:53
but we would come out as fuel guzzling angry motorists. you cant win
0
FollowupID: 384942

Reply By: ev700 - Friday, Sep 16, 2005 at 18:44

Friday, Sep 16, 2005 at 18:44
I'd say you've been given the flick.

Most of the Govt complaint bodies are diplomats most of the time. Act as relief valves for complaints and not much more.

I did the full rounds of Govt about a boat dealer who advertised a new Savage boat and motor package on his site on the net. There it was, a big block advertisement with price and no time limitations. It was just the product I was after and the cowl of the motor, size, painted boat hull model and gear were all clearly visible. Beautiful!

I contacted the dealer in writing (email) and by phone only to be offered a DIFFERENT cr*p make, unpainted, no gear and a cheaper, smaller motor. The dealer refused to talk about the Savage boat. After I persisted with my order (not waking too soon to what was going on, D'oh) the dealer claimed that the subject ad was an 'old one' that hadn't been removed. But it was bait and switch of course.

I got a friend to ring a few days later and he got the same treatment and the advert was still there.

Anyhow, to make a long story short, after walking the talk around Govt depts I found that they were only interested in obtaining complaint stats, nothing more. They werte not even interested when I emailed the url.

I was really disappointed in not getting the boat, although I should have sussed that it was unlikely anyone would discount quality gear as advertised.

I am sure that Govt has to be pressed into action - as evidenced by ACCC's response. Reactive not proactive.

This is why some people cut to the chase and involve radio and TV shock jocks.

regards
EV700
AnswerID: 130449

Follow Up By: angler - Friday, Sep 16, 2005 at 20:29

Friday, Sep 16, 2005 at 20:29
I also read the ACCC letter and came to the conclusion that they wanted nothing to do with it in any way. The advise and action seemed to be "you do the follow up both verbally and by letter" don't call us we will maybe or maybe not call you.
To the best of my knowkedge the ACC has done very little to any one at any time. I do remember one of the video hire stores were spoken to about a GST problem just after the GST was introduced..
0
FollowupID: 384912

Follow Up By: Truckster (Vic) - Saturday, Sep 17, 2005 at 17:44

Saturday, Sep 17, 2005 at 17:44
"To the best of my knowkedge the ACC has done very little to any one at any time"
never a truer word spoken. Another "feel good" toothless tiger from our wonderful governing scum

Remember that Alan Greenteet or what ever its name was, saying when Coles and woolies took over servos, something along the lines of
there will always be a good market out there with the independants, and prices will stay low...
0
FollowupID: 385004

Reply By: wheeler - Friday, Sep 16, 2005 at 20:26

Friday, Sep 16, 2005 at 20:26
The ACCC is a toothless (&useless) tiger. I am yet to see any evidence that they actually do anything at all to address many issues that effect us every day. Fuel prices are a classic example. They are a bunch of useless beaurecrats who are only interested in keeping themselves employed.
AnswerID: 130460

Reply By: geocacher (djcache) - Saturday, Sep 17, 2005 at 10:21

Saturday, Sep 17, 2005 at 10:21
Are the three posters above employed by REPCO and trying to discourage complaints?? Or just misinformed.

If you follow consumer issues closely you would already be aware that the ACCC has had some big wins in the Federal Court recently on this very issue. Harvey Norman and Mobileworld Communications Aust are just two companies who have been very successfully prosecuted.

Lets add REPCO to that list.

If you are interested in the ACCC's results rather than the disuasion of the previous posters try here.

Dave
AnswerID: 130527

Reply By: Truckster (Vic) - Saturday, Sep 17, 2005 at 15:07

Saturday, Sep 17, 2005 at 15:07
so, does this mean that anything will happen for those that missed out? lets send the pricks to the wall...
AnswerID: 130560

Follow Up By: Shaker - Saturday, Sep 17, 2005 at 18:46

Saturday, Sep 17, 2005 at 18:46
You could always organise a lynch mob!
0
FollowupID: 385019

Reply By: Emo - Saturday, Sep 17, 2005 at 19:04

Saturday, Sep 17, 2005 at 19:04
I'm chasing Repco through the Vic Dept of Consumer Affairs and they are interested. I've completed the paperwork they sent me and enclosed a copy of the catalogue. The Morrabbin store didn't have a single Blaunpunkt DVD unit or screen (along with a number of other items).

Dear Mr XXXXXXX,

Thank you for your enquiry lodged through our internet site.

Based on the information provided, Consumer Affairs Victoria considers your
enquiry to constitute a complaint which our organisation would be pleased
to accept. However, there are currently insufficient details provided in
your correspondence for this enquiry to be forwarded to our First Line
Enforcement Branch, and therefore we request that you lodge a Formal
Complaint with our office.

Alternatively, you may use the below link, which provides for the
submission of on-line complaints. If you have electronic copies of your
documents, you can add up to five attachments to your complaint. Documents
in Word, PDF or JPEG formats will be accepted."
AnswerID: 130580

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