30/11/2011

The removalist received a fine and had to give a court an enforceable undertaking after it published false consumer testimonials on its website. The company admitted that the testimonials were false and misleading, as they purported to be actual testimonials prepared by genuine consumers when they were not!

The company had used contractors to place the testimonials, which had been copied from another website, onto the company’s website and certain details had been changed. However, this use of contractors did not save the company, which had failed to have in place procedures to ensure the accuracy of the copied material and allowed the website to "go live", despite the fact that it knew that there were errors on the website.

Businesses need to be aware that all their publications, and their websites, are open to review by the ACCC, competitors, possible customers and the general public. There is little excuse in publishing material that is known to be false. The penalties for doing this can be severe and can damage a business’s reputation and standing with regulators and customers, actual and future.

We can help you to ensure your company doesn’t publish misleading or deceptive comments or articles.

If you have any questions in relation to this article, please contact Gareth Johnson at TOWNSENDS BUSINESS & CORPORATE LAWYERS on (02) 8296 6222.