Australian Competition and Consumer Commission v Jutsen (No 3) [2011] FCA 1352

Australian Competition and Consumer Commission v Jutsen (No 3) [2011] FCA 1352

The respondents participated in and promoted the TVI Express System, a pyramid selling scheme as defined by s 65AAD, after 15 April 2010 using internet-based services, thereby contravening s 65AAC as applied to natural persons by s 6(3). They also made misleading and deceptive representations regarding vacation benefits and affiliations, contravening s 52 and s 53(c)-(d) of the Act.

Parties
Applicant: Australian Competition and Consumer Commission; First Respondent: Lualhati Jutsen; Second Respondent: Tina Aroha Brownlee; Third Respondent: David Graeme Scanlon
Jurisdiction
Australia
Judgment Date
28 November 2011
Procedural Posture
Civil / Liability Determination; Orders Reserved
Outcome
Liability found for contraventions of s 65AAC, s 52, and s 53(c)-(d); orders reserved for further submissions on relief and penalties.
Legal Topics
Pyramid Selling Schemes, Misleading and Deceptive Conduct, False Representations, Internet Based Schemes
Competition Law Consumer Protection Pyramid Selling Schemes Misleading and Deceptive Conduct False Representations Internet Based Schemes

Case Brief

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Parties

Australian Competition and Consumer Commission

Applicant

Lualhati Jutsen

First Respondent

Tina Aroha Brownlee

Second Respondent

David Graeme Scanlon

Third Respondent

Procedural Posture

Civil / Liability Determination; Orders Reserved

Legal Issues

  1. 1 Whether the TVI Express System was a pyramid selling scheme under s 65AAD of the Trade Practices Act 1974 (Cth)
  2. 2 Whether the respondents contravened s 65AAC by participating in a pyramid selling scheme
  3. 3 Whether the respondents made misleading and deceptive representations about the benefits and affiliations of the scheme under s 52, s 53(c), and s 53(d)

Ratio Decidendi

The respondents participated in and promoted the TVI Express System, a pyramid selling scheme as defined by s 65AAD, after 15 April 2010 using internet-based services, thereby contravening s 65AAC as applied to natural persons by s 6(3). They also made misleading and deceptive representations regarding vacation benefits and affiliations, contravening s 52 and s 53(c)-(d) of the Act.

Court Disposition

Liability found for contraventions of s 65AAC, s 52, and s 53(c)-(d); orders reserved for further submissions on relief and penalties.

Orders

  • The proceeding stand over to a date to be fixed for the purpose of hearing submissions in relation to the precise form of declaratory and injunctive relief and the pecuniary penalties sought by the applicant.