Recycler Clarifies That It's Not a Charity
9 December 2010 at 11:22 am
A commercial clothing recycler has been forced to make it clear that it is not a charity by the consumer watchdog, the ACCC.
Allround Recycling Pty Ltd has replaced the signage on more than 150 collection bins as part of a response to concerns raised by the Australian Competition and Consumer Commission about the potentially misleading impression created by the bins and other promotional materials.
Allround Recycling is a commercial organisation that collects second-hand clothing which it then exports and sells to people in third-world countries.
|Allround Recycling acted quickly to address the ACCC's concerns that its signage was misleading.|
It collects clothing using bags that are left at and later collected from homes, and also from collection bins. Some bins are placed in schoolyards by arrangement with schools. Allround Recycling also buys unwanted clothing from charities and other commercial organisations. Allround Recycling collects its material throughout Victoria.
The ACCC was concerned that the words, images and logos of registered charities used by Allround Recycling on its collection bins and on the flyer accompanying its collection bags, together with the methods of collection, created a potentially misleading overall impression that Allround Recycling is a charitable organisation rather than a for-profit business.
The ACCC says that after it raised the matter with Allround Recycling it cooperated to promptly address the concerns.
The ACCC says Allround Recycling's marketing materials now state clearly that it is a commercial organisation. The text, images and logos used have been changed or re sized to avoid confusion with a charity.
ACCC chairman Graeme Samuel says Australians have shown great generosity in supporting charities with clothing donations and commercial recyclers must ensure the way they promote their business does not mislead anyone into believing they are donating goods to a charity when they are not.
He says companies must remember that when determining whether conduct is misleading a court will not only consider any positive statements made but also the impression created by images and the omission of relevant information.
The ACCC says it has the option to take companies to court for misleading and deceptive practices, however Allround Recycling acted quickly to address the ACCC's concerns.