In the media
'Not sure enforcement is the correct term':
CommInsure negotiated 'punishment' with ASIC
The banking royal commission has revealed the corporate
regulator gave the Commonwealth Bank's insurance arm the chance
to change a media release and negotiate the consequences of
misleading advertising (13 September 2018).
More...
CommInsure accused of 'serious misconduct' for
misleading ombudsman
The Commonwealth Bank's life insurance arm is accused
of "serious misconduct" at the royal commission because
it misled the Financial Ombudsman Service during its investigation
of a customer complaint (12 September 2018).
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Blatant profiteering': Qantas accuses airports of
fee gouging
Consumers are paying the price for "blatant
profiteering" by the nation's airports, according to
Qantas, which says their world-leading fees and earnings are proof
new rules are needed to stop them abusing their monopoly positions
(12 September 2018).
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Monopolist airports defend their price gouging
Hot on the heels of major Australian and New Zealand
airlines demanding tighter regulations to curtail price gouging by
Australia's monopoly airport owners, these airports have hit
back, penning a submission to the Productivity Commission's
(PC) inquiry into Australian airports resisting
calls for greater regulation (11 September 2018).
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AADL CEO Stephen Porges engaged in 'misleading and
deceptive' conduct, ordered to pay $1 million
The new CEO of ADMA's parent body, the Australian
Alliance for Data Leadership, Stephen Porges, has been ordered to
pay $941,703 in damages and interest, plus costs, after his actions
in selling shares in a tech startup led him to behave in a
"misleading and deceptive" manner towards the buyer (10
September 2018).
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Woolworths hit with $100m class action over shock
downgrade
Woolworths is facing a potential $100 million payout to
aggrieved shareholders who saw the value of their investments
plunge when the supermarket delivered a shock downgrade to its
profit outlook in 2015. The class action claim in the Federal Court
alleges Woolworths had breached continuous disclosure obligations
and engaged in misleading conduct (10 September 2018).
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'Congestion-free' claims removed from Aussie
Broadband's NBN advertising
NBN provider Aussie Broadband has removed statements
across its advertising which described its broadband services as
"congestion-free" in response to concerns raised by the
ACCC (7 September 2018).
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ACCC takes action against hearing aid retailers for
misleading pensioners
The ACCC has commenced proceedings against hearing aid
retailers Oticon Australia Pty Ltd and Sonic Innovations Pty Ltd,
alleging that both businesses made false and misleading
representations to pensioners in advertisements for hearing aids
supplied under the Australian Government Hearing Services Program
(6 September 2018).
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Financial services giant taken to court over fees for no
service
The corporate watchdog has commenced Federal Court action
against one of Australia's largest financial services companies
over alleged charging of fees for no service and
"misleading" conduct (6 September 2018).
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ACCC launches investigation into 'fake'
honey
The ACCC has launched an investigation into 'fake'
honey after an investigation by 7.30 and Fairfax Media found
Australia's biggest listed honey company, Capilano, and some of
the country's largest supermarket chains were unwittingly
selling "fake" honey. Capilano announced it wants to see
a new Australian testing facility (6 September 2018).
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In practice and courts
ACCC guideline updates
The Australian Competition and Consumer Commission (ACCC)
has published the following guideline updates:
Guidelines on misuse of market power (31 August 2018).
Collective bargaining class exemption: Discussion
paper
The ACCC is seeking feedback in relation to a 'class
exemption' to 'allow small businesses, agribusinesses and
franchisees to negotiate collectively with their customers or
suppliers, including franchisors. If granted, it would be the first
class exemption granted by the ACCC under new powers it acquired as
part of the Harper Reforms in November last year. Feedback on the
draft discussion paper is invited until 21 September. See the
ACCC Discussion Paper.
Cases
Adcock Private Equity v Porges
[2018] NSWSC 1363
COMMERCE – misleading or deceptive conduct –
where first defendant encouraged plaintiff to purchase shares in a
start-up called "SecureOne" – where SecureOne was
involved in potentially ruinous litigation – where first
defendant had fallen out with the management of SecureOne –
misleading or deceptive to portray the potential profitability and
viability of SecureOne without disclosing those matters. COMMERCE
– misleading or deceptive conduct – causation –
ability to infer reliance and causation in appropriate cases
– objectively viewed, plaintiff would not have made
investment in SecureOne had the true position been disclosed
– plaintiff entitled to judgment.
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.