ACCC Prosecute CE Distributor For False Marketing

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The Australian Competition and Consumer Commission is set to prosecute a Sydney-based distributor for selling a power saver device that the Company claims saved consumer 24 per cent on their electricity bills. The ACCC claim that their claims were false.The device has since been removed from the company’s web site.

The ACCC has instituted legal proceedings in the Federal Court against Auscha Corporation Pty Ltd and its Products Development Manager, Nagarajah Rajkumar, for alleged breaches of the Trade Practices Act 1974.

Auscha is a Sydney-based importer and wholesaler of consumer products. In 2008 and 2009, Auscha marketed a product called the Enersonic Power Saver, a device which plugs into a standard electricity outlet and which is purportedly designed to reduce the user’s electricity consumption.

The ACCC alleges that Auscha made a number of false or misleading representations about the Power Saver in breach of the Act, including that the device could save domestic consumers up to 24 per cent on their electricity consumption and was “designed and engineered in Australia”.

The ACCC is seeking court orders including declarations that Auscha and Mr Rajkumar breached the Act, as well as injunctions, corrective notices, costs and orders for the respondents to undertake trade practices law compliance training.

The matter has been listed for a Fast Track scheduling conference in the Federal Court in Sydney at 9.30 a.m. on 5 August 2010 before Justice Nicholas.

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