Australian Competition and Consumer Commission v Safety Compliance Pty Ltd (in liq) (No 2) [2015] FCA 1469

Australian Competition and Consumer Commission v Safety Compliance Pty Ltd (in liq) (No 2) [2015] FCA 1469

Safety Compliance Pty Ltd, through its systematic and deliberate misleading representations to small business customers, contravened provisions of the Trade Practices Act and Australian Consumer Law. Individual respondents were involved in the contraventions, warranting pecuniary penalties, injunctions, and disqualification orders for the purpose of specific and general deterrence, considering the seriousness, extended period, senior involvement, target audience vulnerability, and lack of remedial action or contrition.

Parties
Applicant: Australian Competition and Consumer Commission; First Respondent: Safety Compliance Pty Ltd (in liq) ACN 144 638 826; Second Respondent: Dean James King; Third Respondent: Shane John Black; Fourth Respondent: Fiona Ellen Schimmel
Jurisdiction
Australia
Judgment Date
22 December 2015
Procedural Posture
Civil Enforcement Proceeding / Relief and Penalty Determination After Liability Judgment
Outcome
Relief granted as sought by ACCC, with variations to quantum and duration; injunctions, disqualification orders, pecuniary penalties, and costs imposed.
Legal Topics
Misleading or Deceptive Conduct, Injunctions, Disqualification Orders, Pecuniary Penalties, Deterrence, Accessory Liability, Costs
Consumer Law Corporations Law Misleading or Deceptive Conduct Injunctions Disqualification Orders Pecuniary Penalties Deterrence Accessory Liability +1 more

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Parties

Australian Competition and Consumer Commission

Applicant

Safety Compliance Pty Ltd (in liq) ACN 144 638 826

First Respondent

Dean James King

Second Respondent

Shane John Black

Third Respondent

Fiona Ellen Schimmel

Fourth Respondent

Procedural Posture

Civil Enforcement Proceeding / Relief and Penalty Determination After Liability Judgment

Legal Issues

  1. 1 Whether pecuniary penalties should be imposed on the corporation and individuals for contraventions of the Trade Practices Act 1974 (Cth) and Australian Consumer Law
  2. 2 Whether injunctions restraining individuals from engaging in similar conduct should be ordered
  3. 3 Whether disqualification orders from managing corporations should be made

Ratio Decidendi

Safety Compliance Pty Ltd, through its systematic and deliberate misleading representations to small business customers, contravened provisions of the Trade Practices Act and Australian Consumer Law. Individual respondents were involved in the contraventions, warranting pecuniary penalties, injunctions, and disqualification orders for the purpose of specific and general deterrence, considering the seriousness, extended period, senior involvement, target audience vulnerability, and lack of remedial action or contrition.

Court Disposition

Relief granted as sought by ACCC, with variations to quantum and duration; injunctions, disqualification orders, pecuniary penalties, and costs imposed.

Orders

  • Injunctions restraining Dean James King, Shane John Black, and Fiona Ellen Schimmel for 5 years from making misleading representations about workplace safety products and affiliations.
  • Disqualification of Dean James King from managing corporations for 8 years; of Shane John Black for 30 months; and of Fiona Ellen Schimmel for 18 months.