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International Consumer Protection and Enforcement Network

 
 

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Recent ICPEN Member Agencies' Media Releases

June 2008

AUSTRALIA
Australian Competition and Consumer Commission
www.accc.gov.au

ACCC addresses carbon claims
ACCC Chairman, Mr Graeme Samuel, today launched a suite of ACCC guidance materials on carbon offsets claims. "There is a growing trend of marketing claims about the ability to 'neutralise' the carbon footprint of, for example, cars, flights and households using carbon offsets," he said.

Goodyear Tyres apologises, offers compensation for unsubstantiated environmental claims
Goodyear Tyres is offering customers partial refunds as part of a court enforceable undertaking accepted by the ACCC. During 2007 and 2008, Goodyear Tyres made a number of representations regarding the environmental benefits of its new Eagle LS2000 range of tyres.

'Time right' for third wave of competition, consumer law reform
The climate is now right for Australia to embark on a third wave of competition and consumer policy law reform, ACCC Chairman, Mr Graeme Samuel, said today.*

"Australians are currently experiencing a difficult period as the cost of living increases," Mr Samuel said. "But this is not the first time we have experienced such pressures." Similar pressures had been felt in the early 1970s and 1990s and governments had responded by "unwavering campaigns of competition reform and opening previously closed markets to increased competition."

Nudie's Cranberry Cloudy and Cranberry Blueberry juice claims misleading
Following legal action by the ACCC, the Federal Court has declared that Nudie Foods Australia Pty Ltd made misleading claims about two of its juice products, Rosie Ruby and Rosie Blue, and breached the consumer protection provisions of the Trade Practices Act 1974.

ACCC begins criminal prosecution against Richard Pratt for allegedly providing false or misleading evidence
The ACCC has begun criminal proceedings in the Federal Court in Melbourne against Mr Richard Pratt for allegedly providing false or misleading evidence in the course of an investigation.

ACCC telecommunications reports show continued investment and lower prices for consumers
Two annual statutory reports prepared by the ACCC on telecommunications competitive safeguards, and changes in the prices paid for telecommunications services were tabled in parliament. "These reports show that end users continue to reap the benefits of competition through increased carrier investments, product innovation and lower prices," ACCC Chairman, Mr Graeme Samuel, said

Gotalk addresses concerns about misleading and harassing telemarketing
Telecommunications provider Gotalk Ltd will offer to compensate consumers who suffered a loss as a result of certain telemarketing practices. The ACCC has accepted court enforceable undertakings from Gotalk concerning the conduct of its overseas telemarketing agents.  Following investigations, the ACCC formed the view that Gotalk telemarketers had breached the fair trading provisions of the Trade Practices Act 1974 prohibiting false or misleading representations and harassment or coercion*.

Mortgage stress advice for home owners
The ACCC has published advice on its website to assist home owners experiencing difficulty meeting mortgage repayments. "The ACCC is aware of the increased pressure on families resulting from higher mortgage commitments and is concerned about reports that some businesses may be employing unscrupulous practices to take advantage of vulnerable home owners," ACCC Chairman, Mr Graeme Samuel, said.

"The ACCC has received reports that some businesses are targeting home owners struggling to meet mortgage repayments with the promise of a quick sale at prices below market value."

ACCC proposes to revoke immunity for eBay's PayPal only policy
The ACCC has issued a draft notice proposing to revoke a notification* lodged by eBay International A.G. on 11 April 2008. Under the notification, eBay proposes to mandate the use of PayPal for almost all transactions on the eBay site. "The ACCC is concerned that the notified conduct will allow eBay to use its market power in the supply of online marketplaces to substantially lessen competition in the market in which PayPal operates," ACCC Chairman, Mr Graeme Samuel, said today.

ACCC alleges false, misleading and deceptive conduct in promotion of solarium use
The ACCC has instituted legal proceedings in the Federal Court, Melbourne, against Tropical Sun Industries Pty Ltd, Body Bronze International Pty Ltd and the Australian Tanning Association (ATA) for alleged false, misleading and deceptive conduct in contravention of the Trade Practices Act 1974*. The ACCC alleges the parties engaged in the contravening conduct by misrepresenting the risks associated with solarium use.

Hoover overstates the power output of vacuum cleaners
The ACCC has accepted court enforceable undertakings from Hoover Floorcare Asia Pacific Pty Ltd concerning the overstatement of the power output of two of its vacuum cleaners. Hoover has acknowledged that the represented power ratings of both vacuum cleaners was potentially misleading under the consumer protection provisions of the Trade Practices Act 1974 and has offered to compensate consumers affected by its conduct.

Strengthened Trade Practices laws to assist small business
Small businesses will soon enjoy the greatest protection in 30 years against predatory pricing and misuse of market power as the result of proposed changes to the law, ACCC Chairman, Mr Graeme Samuel, said today. Speaking at the National Small Business Summit in Sydney, he said after decades of inconsistent interpretation of the Trade Practices Act predatory pricing and misuse of market power provisions by the courts, the government was now preparing to remove blockages in the law that would allow the regulator to take more effective action on behalf of small businesses.

ACCC acts to remove 'cash for organs' website
The ACCC has secured the removal of a website, www.cashfororgans.com.au, which claimed to link transplant donors and recipients. "The ACCC was approached on Wednesday (4/6) with concerns that the site may be misleading and deceptive," ACCC Chairman, Mr Graeme Samuel, said today.

Fisher Price Link-a-Doos product alert
In response to ACCC concerns about a potential quality issue with black and white Fisher Price Link-a-Doos Mattel Pty Ltd today has issued a product alert. "The ACCC raised the issue with Mattel following a consumer complaint," ACCC Chairman, Mr Graeme Samuel, said today. "It was possible that excess white plastic moulding along the edges and seams of some black and white Link-a-Doos could be dislodged, posing an inhalation risk when being mouthed by infants.  

CANADA
Competition Bureau
www.competitionbureau.gc.ca

Rising Pump Prices May Fuel Gas Saving Device Claims
As the summer driving season gets underway, the Competition Bureau is warning consumers to beware of false claims from marketers of so-called fuel saving devices.

What Does Green Really Mean? Competition Bureau and Canadian Standards Association seek greater accuracy in environmental claims
The Competition Bureau, in collaboration with the Canadian Standards Association, released guidelines that provide the business community with the tools to ensure that green marketing is not misleading, while providing consumers with greater assurance about the accuracy of environmental claims. 
 
 

Finland
Consumer Agency & Ombudsman

www.kuluttajavirasto.fi


Finnish Consumer Agency appeals to operators: Please show responsibility – walk a mile in your customers’ shoes!
Of the reports arriving at the Finnish Consumer Agency, the largest number by far concern broadband and mobile phone subscriber connections. These problems are also recognized by the operators themselves, but the situation has still not been corrected. The Consumer Agency reached for a way out of this impasse by inviting the companies concerned to a combined seminar. 

The Market Court has forbidden Rentmar Oy’s inappropriate marketing of shares
The Market Court has forbidden Rentmar Oy to continue the inappropriate marketing of shares. In the future, Rentmar Oy may not attract customers to a meeting whose purpose is to sell shares of its stock by advertising the gathering as an opportunity to redeem raffle winnings. The buyers of shares must also be given the right to cancel the trade. 

Court of Appeal: Skandia Life must return a customer’s service charges that reduced the value of an investment
The Court of Appeal has ordered the pension insurance company, Skandia Life, to refund a customer’s administration charges about which it had given misleading and incomplete information. The Consumer Ombudsman assisted the consumer in court.

Operators required to give a realistic picture of broadband connection speed
Wireless broadband connections are not always nearly as fast as they are claimed to be in adverts or sales talk. The Consumer Agency’s new policy outlines require operators to give a realistic picture of the real speed of the connection in their marketing. Likewise, the geographical factors limiting speed should be mentioned.

See also the Finnish Consumer Ombudsman's online newsletter
Current Issues on Consumer Law 5/08 http://www.kuluttajavirasto.fi/en-GB/newsletter_eng/


MEXICO
Consumer Protection Federal Agency (Profeco by its initials in Spanish language) http://www.profeco.gob.mx

Profeco starts the pilot project  Concilianet 

·        Its objective is to facilitate and bring closer the settlement procedure by using information and communication technologies.

·        Profeco starts the modernization of procedures and services offered to the citizens.

·        It aims to give attention in an agile, efficient and timely way. 

To enter to Concilianet, the consumer must consult the web site www.profeco.gob.mx or should be directed straight to the web site http://concilianet.profeco.gob.mx   

Obtained from: http://www.profeco.gob.mx/prensa/prensa08/junio08/bol87.pdf  

Attachment document:
 

NEW ZEALAND
Commerce Commission
www.comcom.govt.nz

 Wings and Wheels over Waikato to refund ticket holders
In a settlement reached with the organisers of the postponed airshow, Wings and Wheels over Waikato, the Commerce Commission has secured refunds for those ticket-holders who were misled by the airshow’s marketing and advertising.

Commerce Commission to conduct Telecommunications Numbering Management StudyThe Commerce Commission today issued the terms of reference for a study into telecommunications numbering.  

Court of Appeal confirms NZ Bus acquisition of Mana Coach shares breached Commerce Act
A judgment released by the Court of Appeal today confirms a High Court ruling that the attempted acquisition of Mana Coach Services by New Zealand Bus Limited (NZBL) was likely to substantially lessen competition in the Wellington regional market for rights to supply subsidised scheduled public and school bus services, in breach of section 47 of the Commerce Act.
 

'Greenwashing' can be misleading - taxi company warned
The Commerce Commission has warned a Wellington taxi company that it may be misleading consumers with its ‘going green’ campaign.
 

Commerce Commission urges caution over holiday vouchers
Consumers should be wary of telemarketers selling vouchers for free or discounted holidays, hotels and flights, the Commerce Commission warned today.
 

Commission releases March quarterly report on telecommunications markets
The Commerce Commission has released its March quarterly monitoring report containing key statistics about telecommunications markets in New Zealand and overseas.

Commerce Commission releases first report on broadband quality
The first quarterly report on New Zealand broadband performance has been released by the Commerce Commission. Commissioned from broadband measurement consultancy Epitiro and ICT analyst firm IDC, the report examines the relative performance of New Zealand’s internet service providers (ISPs). 

Geneva Finance refunds customers after Commerce Commission investigation
Customers of Geneva Finance Limited have received more than $500,000 in refunds, following an out-of-court settlement with the Commerce Commission.

OECD
www.oecd.org

“Governments give consumers a boost at high level OECD meeting on the future of the Internet,” Stepped up actions to (i) combat online identity theft, (ii) strengthen mobile commerce business practices and (iii) promote more transparency and consumer flexibility in communication services were highlighted by Ministers and senior officials participating in a high-level OECD meeting in Seoul, Korea, on 17-18 June. Policy guidance was announced in each of the three areas to encourage countries to put in place effective regimes for protecting and empowering consumers who buy products and services on-line. Efforts to protect consumer rights and build trust in e-commerce were two of the key themes addressed at the Ministerial meeting. 

OECD –  More efforts needed to fight online identity theft, says OECD 

Governments, regulators and communications firms, such as Internet Service Providers (ISPs), should do more to protect people’s personal information online and increase international co-operation to fight the growing problem of identity theft, according to a new OECD report. 

The report on Online Identity (ID) Theft gives an overview of the ways criminals steal people’s personal information, as well as recommendations for industry and government to fight them.  

Cybercrime and ID theft are among the issues to be discussed at the 08.30 roundtable, entitled “Building Confidence”, on June 18 during the OECD Ministerial meeting on the “Future of the Internet Economy”.

POLAND
Office of Competition and Consumer Protection
www.uokik.gov.pl

Change in the post of President of the OCCP
Polish Prime Minister Donald Tusk appointed Małgorzata Krasnodębska-Tomkiel as the new President of the Office of Competition and Consumer Protection.

Commissioner Kuneva at the OCCP
Meglena Kuneva, European Commissioner for Consumer Protection, and Małgorzata Krasnodębska-Tomkiel, President of the OCCP, discussed the system of consumer protection in Poland.

UNITED KINGDOM
Office of Fair Trading
www.oft.gov.uk


OFT warns consumers about misleading IVA mailings
The OFT is warning consumers to be careful before responding to unsolicited mailings which advise them to cancel existing individual voluntary arrangements (IVAs) and which suggest they opt for an alternative debt management solution such as bankruptcy instead.

Some such mailings sent out to consumers misleadingly suggest to recipients they may have been mis-sold the IVA and/or that bankruptcy may be more suitable for their circumstances when this may not be the case. These mailings are being targeted at vulnerable consumers in IVAs by companies who appear to have accessed their personal contact details from the public register of people in IVAs which the Insolvency Service is required by law to maintain.

OFT warns racegoers - 'Don't be taken for a ride'
The OFT is warning consumers who like a flutter on the horses not to be conned by bogus racing tipster mailings. The OFT estimates that punters lose at least £5 millions every year to such scams.

To fight back against the scammers, OFT Scambusters, together with the South East Trading Standards Scambusters Team, has handed out a fake racing tipster scam mailing to race goers attending the Derby Festival meeting at Epsom Downs racecourse.

OFT launches its first education resource to boost consumer skills
The Office of Fair Trading has launched its first ever education sector resource, with a new consumer education toolkit for teachers. This reflects the importance that the OFT places on helping to build skills and confidence amongst consumers to support them in dealing with businesses and making purchases.

The toolkit, 'Skilled to go', is a free online resource that uses everyday consumer situations, such as choosing a mobile phone package or shopping online, as the basis to develop consumer skills, knowledge and confidence.

OFT gives approval to an estate agents redress scheme
The OFT has given the Ombudsman for Estate Agents Company Limited (OEA) approval for its estate agents redress scheme under the Consumer Estate Agents and Redress Act 2007 (CEARA).

With the approval of a redress scheme, the Secretary of State for Business Enterprise and Regulatory Reform (BERR) will now be able to make an order under CEARA requiring all estate agents dealing with residential property in the UK to join an approved scheme. BERR expects this order to become law and commence on 1 October 2008, from which time estate agents will be required to join an approved scheme.

OFT publishes new reports as part of homebuilding market study
The OFT has today published two new reports that it commissioned as part of its market study into the UK homebuilding industry.

Download Study investigating financing for homebuilders

Download New homebuild consumer survey

 

Three imprisoned in first OFT criminal prosecution for bid rigging

Three UK businessmen were today sentenced to imprisonment for between two and a half to three years for cartel offences. All three were also disqualified from acting as company directors for periods of between five and seven years. These are the first ever convictions for a cartel offence since criminal prosecution powers were given to the OFT under the Enterprise Act. 

USA
Federal Trade Commission
www.ftc.gov

FTC Reports on Alcohol Marketing and Self-Regulation
Study Finds High Levels of Compliance with Voluntary Placement Standard

Payday Loan Lead Generators Settle FTC Charges
Two payday loan lead generators have agreed to settle Federal Trade Commission charges that their Internet advertising stated payday loan costs and repayment periods without disclosing annual percentage rate (APR) information as federal law requires.

FTC Warns Against Sweepstakes Scammers Posing as Government Officials
Putting a new twist on an old scam, con artists are posing as government officials when they tell consumers they have won a sweepstakes prize.

FTC Submits Staff Comment to FAA on Proposed Congestion Management Rule for LaGuardia Airport
The Federal Trade Commission has approved a staff comment to the Federal Aviation Administration (FAA) on a proposed congestion management rule for LaGuardia Airport.


FTC, California Office of Privacy Protection to Co-Host Workshop for Businesses on Best Practices for Protecting Personal Information and Securing Data
The Federal Trade Commission and the California Office of Privacy Protection will co-host a half-day public workshop in Los Angeles on Wednesday, August 13, 2008, on how businesses can secure personal information and protect the privacy of consumers and employees.

Commission Approves Federal Register Notice Announcing Final Amendments to Automotive Fuel Ratings
Commission approval of Federal Register notice - The Commission has approved publication of a Federal Register notice announcing final amendments to the agency's Fuel Rating Rule.

FTC Warns Consumers About Potential Charity Scams
The Federal Trade Commission is urging consumers to be cautious of potential charity scams in connection with the recent floods and tornadoes that have caused damage in the Midwest.

FTC Halts Cross Border Con Artists
Thousands of Small Businesses and Nonprofits Billed for Domain Registrations They Didn't Get

FTC Staff Files Comments with HUD on Proposed Amendments to RESPA Regulations
The Federal Trade Commission has authorized its staff to file comments with the U.S. Department of Housing and Urban Development (HUD) concerning proposed amendments to regulations implementing the Real Estate Settlement Procedures Act (RESPA).

FTC Extends Public Rebuttal Comment Period Related to Proposed Business Opportunity Rule; Commission Approves Final Consent Order in Matter of Agrium, Inc
Commission extension of public rebuttal comment period: The Commission has approved the extension of the public rebuttal comment period related to the Revised Notice of Proposed Rulemaking (RNPR) in connection with the Business Opportunity Rule. Commission approval of final consent order: Following a public comment period, the Commission has approved a final consent order in the matter of Agrium, Inc. 

FTC Testifies on Spyware
The Federal Trade Commission today told the Senate Committee on Commerce, Science, and Transportation that "legislation authorizing the Commission to seek civil penalties in spyware cases could add a potent remedy to those otherwise available to the Commission."

"Free Software CD" Internet Operation Settles FTC Charges
Defendants who allegedly offered "free" software CDs that weren't free, and billed unsuspecting consumers for a software continuity program they didn't know they were enrolled in, have agreed to settle FTC charges that their practices violated federal law.

FTC Sues Subprime Credit Card Marketing Company and Debt Collector for Deceptive Credit Card Marketing
The Federal Trade Commission today announced the filing of a lawsuit charging CompuCredit Corporation and its wholly-owned debt collection subsidiary, Jefferson Capital Systems, LLC, with deceptive marketing practices in selling credit cards to consumers in the subprime market.  

"We Don't Serve Teens": Slogan for a Safe Summer
Because summer is a time when teen drunk-driving deaths peak and teens are at high risk of starting to drink, the Federal Trade Commission is urging adults around the nation to say "Let's Make it a Safe Summer. Don't Serve Alcohol to Teens."


FTC Press Conference Will Announce Lawsuit Challenging Subprime Credit Card Marketing Company and Debt Collector
The Federal Trade Commission will announce a law enforcement action today, charging a credit card marketer and a debt collection company with using deceptive marketing practices and abusive debt collection tactics affecting consumers in the subprime market.


FTC Approves Final Consent Order in Matters of CashPro, American Cash Market, Inc., and Anderson Payday Loans
Commission approval of final consent orders - Following a public comment period, the Commission has approved the issuance of final consent orders in the matters of CashPro d/b/a MakePaydayToday.com, American Cash Market, Inc., and Anderson Payday Loans.

FTC To Host Debt Settlement Workshop
Will Examine Industry Trend Toward For-Profit Consumer Debt Relief Services

Defendants in Debt Collection Scheme Aimed At Hispanics Agree to Settle FTC Charges
Two defendants have agreed to settle Federal Trade Commission charges for allegedly victimizing Spanish-speaking consumers nationwide by posing as debt collectors seeking money the consumers did not owe.

FTC Secures Full Proceeds of Business Opportunity Scammer's $100,000 Performance Bond
The Federal Trade Commission today announced that it has successfully secured the proceeds of repeat offender Richard Neiswonger's $100,000 performance bond.

Home Buying Consulting Business Penalized for Credit Repair Violations
Under a federal court order entered on May 29, a home-buying consulting business that offers credit repair and home-buying consulting services will pay $10,000 to settle Federal Trade Commission charges, including illegally charging an advance fee for credit repair and falsely claiming that it can remove negative information from consumers' credit reports, even if the information is accurate and timely.

Before a Hurricane Hits, Make Sure Your Finances Are Safe and Sound
As hurricane season swings into high gear, you may be more than ready with fully charged batteries, evacuation plans for loved ones and pets, refilled prescriptions, and other precautions. Perhaps you've considered how to deal with the possibility of storm surges, high winds, tornadoes, and flooding.

Operator Who Crammed Unauthorized Charges For Web Site Services Onto Phone Bills Ordered to Pay $4.1 Million Over FTC Charges
A U.S. district court has ordered a halt to the illegal operations of a defendant who crammed unauthorized charges for Web site services onto the phone bills of hundreds of thousands of small businesses and non-profit organizations.

Cleaning Supply Sellers Agree to Settle FTC Contempt Charges
Dennis J. Saccurato and his businesses, Sparta Chem, Inc. and Compu-Kleen Inc. of Elmwood Park, have agreed to a settlement with the Federal Trade Commission in which, among other things, they admit that they are in contempt for violating a court order barring them from making fraudulent representations to induce sales of cleaning supplies and shipping and billing for supplies that businesses didn't order.

FTC Announces Workshop on 'Green Guides' and Environmental Claims for Building and Textiles
Third Public Workshop in Series Scheduled for July 15, 2008, in Washington, DC

FTC Halts Bogus Prepaid Phone Card Claims, Cards Failed to Deliver the Number of Minutes Promised in Ads
At the request of the Federal Trade Commission, a U. S. District Court has ordered a temporary halt to the deceptive advertising claims used to promote prepaid phone cards marketed by Alternatel, Inc.; G.F.G. Enterprises, LLC, also d/b/a Mystic Prepaid; Voice Prepaid, Inc.; Voice Distributors, Inc.; Telecom Express, Inc.; and their principals, pending trial.