The Australian Competition and Consumer Commission has
instituted proceedings in the Federal Court against Mobileworld
Operating Pty Ltd (trading as Crazy John's) for alleged
contraventions of the Trade Practices Act 1974 in relation to
the promotion of certain of its mobile phone plans.
The ACCC alleges that Crazy John's has engaged in
misleading or deceptive conduct by representing that handsets
on its Crazy Phone Plans are available 'FREE'
or for '$0', when in fact consumers are
required to pay for the handsets through higher call rates than
those available on comparable plans which do not include a
The ACCC alleges that these representations contravene
sections 52 and 53 of the TPA. The ACCC is seeking a range of
remedies including declarations regarding the alleged
contravening conduct and corrective advertising.
The ACCC's proceedings utilise the Fast Track List
in the Victorian registry of the Federal Court, which is
intended to streamline court procedures in matters of this
nature, thereby reducing the time and cost of litigation.
A scheduling conference has been provisionally set down for
29 February 2008.
Section 52 of the Trade Practices Act 1974 states that a
corporation shall not, in trade or commerce, engage in conduct
that is misleading or deceptive or is likely to mislead or
Section 53 of the Trade Practices Act 1974 refers to conduct
of a corporation in trade or commerce in connexion with the
supply or possible supply of goods, or the promotion of the
supply of goods or services. Section 53(e) prohibits a
corporation from making a false or misleading representation
with respect to the price of goods or services.
The content of this article is intended to provide a
general guide to the subject matter. Specialist advice should
be sought about your specific circumstances.
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The issue of recording telephone calls was recently considered in the Federal Court in Furnari v Ziegert  FCA 1080.
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