Australian Competition and Consumer Commission v Social-Lites Pty Ltd [2017] FCA 398

Australian Competition and Consumer Commission v Social-Lites Pty Ltd [2017] FCA 398

Social-Lites Pty Ltd, by representing its e-cigarette products did not contain carcinogens and toxic substances when that was not the case, engaged in misleading or deceptive conduct, made false or misleading representations regarding composition, and engaged in conduct liable to mislead the public, in contravention of ss 18, 29(1)(a), and 33 of the Australian Consumer Law. Mr Lee O'Hare, as CEO, was knowingly concerned in these contraventions. Declarations, injunctions, corrective notices, training orders, pecuniary penalties, and costs orders as set out are appropriate and within the Court's power, and the agreed penalties are within the permissible range given the admitted...

Jurisdiction
Australia
Judgment Date
02 May 2017
Procedural Posture
Civil / Final Judgment
Outcome
Declarations made; pecuniary penalties imposed; injunctions, corrective notices, compliance and training orders granted; costs ordered, mostly by consent.
Legal Topics
['misleading or Deceptive Conduct' 'false or Misleading Representations' 'injunctions' 'pecuniary Penalties' 'compliance Orders' 'corrective Advertising']
['consumer Law' 'trade Practices'] ['misleading or Deceptive Conduct' 'false or Misleading Representations' 'injunctions' 'pecuniary Penalties' 'compliance Orders' 'corrective Advertising']

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Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 ["Whether Social-Lites Pty Ltd and Mr Lee O'Hare engaged in misleading or deceptive conduct regarding the composition and health effects of e-cigarette products" 'Whether false or misleading representations were made as to the absence of carcinogens and toxic substances in e-cigarette products' 'Whether the proposed penalties and orders by consent are within the permissible range and appropriate in the circumstances']

Ratio Decidendi

Social-Lites Pty Ltd, by representing its e-cigarette products did not contain carcinogens and toxic substances when that was not the case, engaged in misleading or deceptive conduct, made false or misleading representations regarding composition, and engaged in conduct liable to mislead the public, in contravention of ss 18, 29(1)(a), and 33 of the Australian Consumer Law. Mr Lee O'Hare, as CEO, was knowingly concerned in these contraventions. Declarations, injunctions, corrective notices, training orders, pecuniary penalties, and costs orders as set out are appropriate and within the Court's power, and the agreed penalties are within the permissible range given the admitted...

Court Disposition

Declarations made; pecuniary penalties imposed; injunctions, corrective notices, compliance and training orders granted; costs ordered, mostly by consent.

Orders

  • ["Declarations of contravention by Social-Lites Pty Ltd and Mr Lee O'Hare of ss 18, 29(1)(a), 33 of the ACL" 'Injunctions restraining misleading or similar representations for 3 years' 'Orders for removal of offending material from websites within 7 days' 'Pecuniary penalty of $50,000 against Social-Lites Pty Ltd,...