Australian Competition and Consumer Commission v Ascot Four Pty Ltd (No 2) [2009] FCA 28

Australian Competition and Consumer Commission v Ascot Four Pty Ltd (No 2) [2009] FCA 28

A deliberate misrepresentation about comparative pricing was made by the defendant through centrally issued advertising, representing false savings to consumers. In weighing all mitigating and aggravating factors, including seriousness of conduct, degree of cooperation, lack of previous criminal history, and cessation of trading, a conviction and a penalty of $380,000 for all counts is appropriate to reflect deterrence and punishment.

Parties
Prosecutor: Australian Competition and Consumer Commission; Defendant: Ascot Four Pty Ltd
Jurisdiction
Australia
Judgment Date
23 January 2009
Procedural Posture
Criminal Prosecution / Sentencing Judgement
Outcome
conviction on all counts; penalty imposed
Legal Topics
False and Misleading Misrepresentations, Comparative Price Advertising, Sentencing and Penalties
Trade Practices Consumer Protection Criminal Law False and Misleading Misrepresentations Comparative Price Advertising Sentencing and Penalties

Case Brief

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Parties

Australian Competition and Consumer Commission

Prosecutor

Ascot Four Pty Ltd

Defendant

Procedural Posture

Criminal Prosecution / Sentencing Judgement

Legal Issues

  1. 1 What is the appropriate penalty for making false or misleading representations about the price of goods in comparative price advertising under section 75AZC(1)(g) of the Trade Practices Act 1974 (Cth)?

Ratio Decidendi

A deliberate misrepresentation about comparative pricing was made by the defendant through centrally issued advertising, representing false savings to consumers. In weighing all mitigating and aggravating factors, including seriousness of conduct, degree of cooperation, lack of previous criminal history, and cessation of trading, a conviction and a penalty of $380,000 for all counts is appropriate to reflect deterrence and punishment.

Court Disposition

conviction on all counts; penalty imposed

Orders

  • On 11 counts, conviction recorded against defendant.
  • Collective penalty of $380,000 imposed to be paid within two calendar months from date of order.