Worldplay Services Pty Ltd v Australian Competition & Consumer Commission [2005] FCAFC 70

Worldplay Services Pty Ltd v Australian Competition & Consumer Commission [2005] FCAFC 70

A corporation incorporated or carrying on business in Australia contravenes s 65AAC(1) of the Trade Practices Act 1974 (Cth) if it participates in a pyramid selling scheme and the participation occurs in Australia, regardless of whether the scheme itself operates within Australia or affects Australian consumers.

Parties
First Appellant: Worldplay Services Pty Ltd; Second Appellant: Greg James Kennedy; Respondent: Australian Competition and Consumer Commission
Jurisdiction
Australia
Judgment Date
06 May 2005
Procedural Posture
Appeal / Judgment on Appeal From Single Judge
Outcome
Appeal dismissed with costs.
Legal Topics
Pyramid Selling Scheme, Territorial Operation of Australian Law, Trade Practices Act 1974 (cth) S 65 AAC, Extraterritoriality
Competition Law Consumer Protection Pyramid Selling Scheme Territorial Operation of Australian Law Trade Practices Act 1974 (cth) S 65 AAC Extraterritoriality

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Parties

Worldplay Services Pty Ltd

First Appellant

Greg James Kennedy

Second Appellant

Australian Competition and Consumer Commission

Respondent

Procedural Posture

Appeal / Judgment on Appeal From Single Judge

Legal Issues

  1. 1 Whether participation by an Australian corporation in a pyramid selling scheme operating outside Australia breaches s 65AAC(1) of the Trade Practices Act 1974 (Cth)
  2. 2 Whether there must be a territorial connection between the scheme and Australia for liability to arise under s 65AAC(1)

Ratio Decidendi

A corporation incorporated or carrying on business in Australia contravenes s 65AAC(1) of the Trade Practices Act 1974 (Cth) if it participates in a pyramid selling scheme and the participation occurs in Australia, regardless of whether the scheme itself operates within Australia or affects Australian consumers.

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal be dismissed with costs.