'Waterproof' Radio Only 'Splash-proof'

 

A Japanese telecommunication product manufacturer and wholesaler, trading in Australia, is in hot water with the Australian Competition and Consumer Commission (ACCC), after it was found that one of the company's radios was not in fact waterproof, although it was advertised so.

The radio is a VHF handheld two-way radio which was waterproof as certified to level 4 of the Japanese Industrial Standard. However this standard refers only to a 'splash-proof' classification, meaning that the radio's 'waterproof' claim is misleading and therefore is a breach of Section 53(a) of the Trade Practices Act 1974 (Cth). The packaging for the radio clearly displayed the word 'waterproof' in large font, which sends the message to consumers that the radio may be completely immersed in water without incurring any water damage, though this is not the case. Furthermore, the ACCC was also concerned with the warranty of the radio, as it misled customers into thinking that they had no legal protection when it comes to loss or damage of the product.

The Company has since offered court enforceable undertakings to the ACCC. As part of its undertakings, the Company will be required to:

- Provide owners of the radio which had been misrepresented as being waterproof with the option of a full refund;

- Provide warranty protection cover for water damage;

- Replace all packaging containing the term 'waterproof' with accurate packaging containing the term 'splash-proof';

- Write to all retailers, wholesalers and service agents stocking the Company's product, advising them of the ACCC's concerns, including the change of packaging and the added rights available to customers;

- Publish a public disclosure notice on the Company's website; and

- Create a trade practices law compliance program.