Australian Competition and Consumer Commission v Boost Tel Pty Limited [2010] FCA 701

Australian Competition and Consumer Commission v Boost Tel Pty Limited [2010] FCA 701

Boost made false, misleading, or deceptive representations in its advertising for pre-paid phone cards regarding the absence of fees other than timed call charges, stipulated call rates, and total available minutes. These representations contravened sections 52, 53(aa), 53(c), and 53(e) of the Trade Practices Act, as qualifying statements in fine print or by asterisks were not sufficiently prominent to dispel the misleading impression created by the dominant primary statements. The relevant class of consumers is broad and includes persons for whom English is not their first language. The Court granted declarations, injunctions, orders for corrective advertising, compliance programs, and...

Jurisdiction
Australia
Judgment Date
05 July 2010
Procedural Posture
Civil / Judgment
Outcome
Declarations of contravention, injunctions, corrective advertising, compliance program orders, and costs ordered against the first respondent (Boost Tel Pty Limited). Proceedings against Prepaid Services Pty Limited adjourned for consent orders.
Legal Topics
['misleading or Deceptive Conduct' 'false Representation' 'advertising Law' 'corrective Advertising' 'injunctions' 'trade Practices Act 1974']
['competition and Consumer Law'] ['misleading or Deceptive Conduct' 'false Representation' 'advertising Law' 'corrective Advertising' 'injunctions' 'trade Practices Act 1974']

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Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 ['Whether representations made in advertisements for international phone cards were false, misleading or deceptive under the Trade Practices Act 1974 (Cth)' 'Sufficiency of disclaimers and small print in qualifying primary representations in advertising' 'Identification of the relevant class of consumers affected' 'Appropriateness of orders for injunctions, corrective advertising, and compliance programs']

Ratio Decidendi

Boost made false, misleading, or deceptive representations in its advertising for pre-paid phone cards regarding the absence of fees other than timed call charges, stipulated call rates, and total available minutes. These representations contravened sections 52, 53(aa), 53(c), and 53(e) of the Trade Practices Act, as qualifying statements in fine print or by asterisks were not sufficiently prominent to dispel the misleading impression created by the dominant primary statements. The relevant class of consumers is broad and includes persons for whom English is not their first language. The Court granted declarations, injunctions, orders for corrective advertising, compliance programs, and...

Court Disposition

Declarations of contravention, injunctions, corrective advertising, compliance program orders, and costs ordered against the first respondent (Boost Tel Pty Limited). Proceedings against Prepaid Services Pty Limited adjourned for consent orders.

Orders

  • ['Declarations that Boost engaged in conduct in contravention of ss 52(1), 53(aa), 53(c), and 53(e) Trade Practices Act 1974 (Cth)' 'Injunctions restraining Boost from making similar false or misleading representations for 2 years' 'Orders requiring Boost to sufficiently disclose all applicable fees, rates, and...