Company director Banning for 15 years after ACCC Action a First
Wednesday 30 May 2012 @ 1.43 p.m. | Trade & Commerce
In ACCC v Halkalia Pty Ltd [2012] FCA 534 (28 May 2012) and ACCC v Halkalia Pty Ltd (No 2) [2012] FCA 535 (28 May 2012) the Federal Court has ruled on the penalty resulting from a judgment handed down yesterday that concerned false, misleading or deceptive conduct in the promotion and sale of a parcel distribution business for 'Heartlink' branded household products.
The court found that consumers were misled about the profitability and earnings potential of the business opportunity as well as the overall viability of the business.
The penalty handed out to the company director banning him for 15 years with a penalty of $450,000 is a first and as stated in a press release by ACCC chairman Rod Sims:
"… is the first time the ACCC has obtained orders from the Federal Court which disqualify an individual from managing companies."
Legislation considered in the cases:
Australian Consumer Law s 232
Corporations Act 2001 (Cth) ss 206C, 206E, 601AH
Fair Trading Act 1999 (Vic)
Federal Court Act 1976 (Cth) s 21
Federal Court Rules 2011 (Cth) r 5.23
Trade Practices Act 1974 (Cth) ss 6, 51A, 52, 76E, 80, 86E
Read the Full ACCC release
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