Australian Competition and Consumer Commission v Lorna Jane Pty Ltd [2021] FCA 852

Australian Competition and Consumer Commission v Lorna Jane Pty Ltd [2021] FCA 852

Lorna Jane Pty Ltd engaged in misleading or deceptive conduct and made false or misleading representations regarding its LJ Shield Activewear products, thereby contravening ss 18, 29(1)(g), and 33 of the ACL. The agreed penalty of $5 million and other orders are appropriate given the seriousness of the contraventions, the context of public fear during the COVID-19 pandemic, and the admissions made by Lorna Jane.

Parties
Applicant: Australian Competition and Consumer Commission; First Respondent: Lorna Jane Pty Ltd; Second Respondent: Lorna Jane Clarkson
Jurisdiction
Australia
Judgment Date
23 July 2021
Procedural Posture
Civil Penalty Proceeding / Final Orders and Judgment on Admissions
Outcome
Orders made by consent against Lorna Jane Pty Ltd; proceeding against Ms Clarkson dismissed
Legal Topics
Misleading or Deceptive Conduct, False or Misleading Representations, Misleading the Public, Injunctions, Pecuniary Penalties
Consumer Law Commercial Law Misleading or Deceptive Conduct False or Misleading Representations Misleading the Public Injunctions Pecuniary Penalties

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Parties

Australian Competition and Consumer Commission

Applicant

Lorna Jane Pty Ltd

First Respondent

Lorna Jane Clarkson

Second Respondent

Procedural Posture

Civil Penalty Proceeding / Final Orders and Judgment on Admissions

Legal Issues

  1. 1 Whether Lorna Jane Pty Ltd contravened ss 18, 29(1)(g), and 33 of the Australian Consumer Law by making false, misleading or deceptive representations regarding LJ Shield Activewear products
  2. 2 Whether proposed pecuniary penalty and other orders were appropriate

Ratio Decidendi

Lorna Jane Pty Ltd engaged in misleading or deceptive conduct and made false or misleading representations regarding its LJ Shield Activewear products, thereby contravening ss 18, 29(1)(g), and 33 of the ACL. The agreed penalty of $5 million and other orders are appropriate given the seriousness of the contraventions, the context of public fear during the COVID-19 pandemic, and the admissions made by Lorna Jane.

Court Disposition

Orders made by consent against Lorna Jane Pty Ltd; proceeding against Ms Clarkson dismissed

Orders

  • Lorna Jane Pty Ltd to pay $5,000,000 pecuniary penalty to the Commonwealth of Australia under specified terms
  • Lorna Jane Pty Ltd restrained for 3 years from making misleading representations regarding anti-virus/virus elimination/protection characteristics unless it has a reasonable basis