On 1 September 2011, the ACCC accepted court-enforceable undertakings from Advanced Lifestyle International Retail Pty Ltd (“ALI”) and one if its former salespeople, in respect of false or misleading representations made to consumers during in-home sales presentations. ALI acknowledged that its engaged in misleading and deceptive conduct by approaching consumers in shopping centres or by telephone and offering them a “free therapy treatment” or “free massage”, when the true purpose was to make an in-home sales presentation. ALI also represented that consumers did not have a right to cancel their contracts, when Queensland door-to-door trading legislation that applied at time actually entitled consumers to a cooling off period.
ALI also made misleading representations about the price of the products, and that they were approved, sponsored or affiliated with the Government. As part of the obligations arising from the undertakings, ALI’s salespeople are now required to give each consumer a notice about their rights at the beginning of every sales presentation. ALI also paid three Infringement Notice penalties totalling $19,800.