Australian Competition and Consumer Commission v SensaSlim Australia Pty Ltd (in liq) (No 7) [2016] FCA 484

Australian Competition and Consumer Commission v SensaSlim Australia Pty Ltd (in liq) (No 7) [2016] FCA 484

The pecuniary penalties, disqualification orders, and (for Mr Foster) injunctions were imposed in light of the deliberate, fraudulent, and egregious misrepresentations perpetrated by and through SensaSlim for financial gain in contravention of consumer protection statutes. Maximum penalties were imposed for the gravest conduct, taking account of need for general deterrence, seriousness of loss to franchisees and consumers, findings of deliberate concealment and repeated dishonesty, and personal circumstances where relevant. Disqualification periods reflected the risk to the public, degree of culpability, and likelihood of reoffending. Injunctions were tailored to the misconduct and need...

Jurisdiction
Australia
Judgment Date
11 May 2016
Procedural Posture
Civil / Penalty and Relief Hearing Following Established Liability
Outcome
Pecuniary penalties, disqualification orders, and injunctions granted as specified; costs awarded against relevant respondents.
Legal Topics
['pecuniary Penalty' 'disqualification Orders' 'injunctions' 'misrepresentation' 'franchise Systems' 'accessory Liability' 'consumer Protection']
['competition and Consumer Law' 'corporate Law'] ['pecuniary Penalty' 'disqualification Orders' 'injunctions' 'misrepresentation' 'franchise Systems' 'accessory Liability' 'consumer Protection']

Case Brief

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Procedural Posture

Civil / Penalty and Relief Hearing Following Established Liability

Legal Issues

  1. 1 ['What pecuniary penalties and other relief should be imposed upon the respondents for contraventions of the Trade Practices Act 1974 (Cth), the Competition and Consumer Act 2010 (Cth), and the Australian Consumer Law?' 'Whether the respondents should be disqualified from managing corporations and/or subject to injunctions for their involvement in the misrepresentations and deceptive conduct.']

Ratio Decidendi

The pecuniary penalties, disqualification orders, and (for Mr Foster) injunctions were imposed in light of the deliberate, fraudulent, and egregious misrepresentations perpetrated by and through SensaSlim for financial gain in contravention of consumer protection statutes. Maximum penalties were imposed for the gravest conduct, taking account of need for general deterrence, seriousness of loss to franchisees and consumers, findings of deliberate concealment and repeated dishonesty, and personal circumstances where relevant. Disqualification periods reflected the risk to the public, degree of culpability, and likelihood of reoffending. Injunctions were tailored to the misconduct and need...

Court Disposition

Pecuniary penalties, disqualification orders, and injunctions granted as specified; costs awarded against relevant respondents.

Orders

  • ['SensaSlim Australia Pty Ltd (in liquidation) to pay total pecuniary penalty of $3,550,000 (comprised of $1,100,000, $1,100,000, $1,100,000, $250,000 in respect of outlined contraventions); enforcement of penalty only with leave of Court.' "Peter Clarence Foster to pay pecuniary penalty of $660,000; permanently...