Advertising: Aus Trade Practices Act proceedings for false claims

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% 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.

Source: ACC