Australian Competition and Consumer Commission v Campbell (No 3) [2021] FCA 528

Australian Competition and Consumer Commission v Campbell (No 3) [2021] FCA 528

Jump Loops Pty Ltd and Mr Campbell contravened ss 18, 29(1)(g), 36(3), and 36(4) of the Australian Consumer Law by representing to franchisees that operational swim school franchises would be provided within 12 months when there were not reasonable grounds for doing so, and by accepting payments with no reasonable...

Source-derived case information.

Parties
Applicant: Australian Competition and Consumer Commission; First Respondent: Jump Loops Pty Ltd (In Liquidation); Second Respondent: Swim Loops Holdings Pty Ltd (In Liquidation); Third Respondent: Ian Michael Campbell
Jurisdiction
Australia
Judgment Date
19 May 2021
Procedural Posture
Application for Remedies Under the Australian Consumer Law / Final Judgment With Settlement and Penalty Approval
Outcome
Declarations made, penalties imposed, redress ordered, injunctions granted, specific cost and confidentiality orders made.
Legal Topics
Misleading or Deceptive Conduct, False or Misleading Representations, Franchise Regulation, Wrongly Accepting Payment, Pecuniary Penalty, Non Party Consumer Redress, Injunctions, Declaratory Relief
Consumer Law Commercial Law Corporations Law Misleading or Deceptive Conduct False or Misleading Representations Franchise Regulation Wrongly Accepting Payment Pecuniary Penalty +3 more

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Parties

Australian Competition and Consumer Commission

Applicant

Jump Loops Pty Ltd (In Liquidation)

First Respondent

Swim Loops Holdings Pty Ltd (In Liquidation)

Second Respondent

Ian Michael Campbell

Third Respondent

Procedural Posture

Application for Remedies Under the Australian Consumer Law / Final Judgment With Settlement and Penalty Approval

Legal Issues

  1. 1 Whether the respondents contravened ss 18, 29(1)(g), 36(3), and 36(4) of the Australian Consumer Law by making misleading representations to prospective franchisees and accepting payment without reasonable grounds for timely supply of franchises.
  2. 2 Whether Mr Campbell was knowingly concerned in and party to the contraventions.
  3. 3 Appropriate level of pecuniary penalties, compensation orders, and injunctive relief for the admitted contraventions.

Ratio Decidendi

Jump Loops Pty Ltd and Mr Campbell contravened ss 18, 29(1)(g), 36(3), and 36(4) of the Australian Consumer Law by representing to franchisees that operational swim school franchises would be provided within 12 months when there were not reasonable grounds for doing so, and by accepting payments with no reasonable prospect of meeting obligations. Penalties, non-party redress, declarations, and injunctions are appropriate, with preference given to compensation orders due to Mr Campbell's limited resources, in line with s 227.

Court Disposition

Declarations made, penalties imposed, redress ordered, injunctions granted, specific cost and confidentiality orders made.

Orders

  • First Respondent (Jump Loops Pty Ltd) to pay pecuniary penalty of $23,000,000 to the Commonwealth of Australia.
  • Third Respondent (Mr Campbell) to pay pecuniary penalty of $400,000 to the Commonwealth of Australia.