Specsavers Pty Ltd v Coastal Contacts (Aus) Pty Ltd [2012] FCA 102

Specsavers Pty Ltd v Coastal Contacts (Aus) Pty Ltd [2012] FCA 102

The representations made by Coastal Contacts—namely as to percentage savings, prices of products, free shipping, lowest price guarantees, and identical products—were likely to mislead consumers and contravened ss 18 and 48 of the Australian Consumer Law, especially where sponsored links targeted consumers searching...

Source-derived case information.

Parties
Applicant: Specsavers Pty Ltd (ACN 097 147 932); First Respondent: Coastal Contacts (Aus) Pty Ltd (ACN 115 412 943); Second Respondent: Coastal Contacts Inc
Jurisdiction
Australia
Judgment Date
17 February 2012
Procedural Posture
Interlocutory Application / Interlocutory (application for Interlocutory Injunction)
Outcome
Interlocutory relief granted; parties to bring in short minutes to give effect to reasons
Legal Topics
Misleading or Deceptive Conduct, Single Price Advertising, Interlocutory Injunctions, Internet Advertising, Google Sponsored Links, Comparative Advertising
Consumer Law Competition Law Misleading or Deceptive Conduct Single Price Advertising Interlocutory Injunctions Internet Advertising Google Sponsored Links Comparative Advertising

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Parties

Specsavers Pty Ltd (ACN 097 147 932)

Applicant

Coastal Contacts (Aus) Pty Ltd (ACN 115 412 943)

First Respondent

Coastal Contacts Inc

Second Respondent

Procedural Posture

Interlocutory Application / Interlocutory (application for Interlocutory Injunction)

Legal Issues

  1. 1 Whether the representations and sponsored links by Coastal Contacts are misleading or deceptive in contravention of s 18 of the Australian Consumer Law (Competition and Consumer Act 2010, Sch 2)
  2. 2 Whether the pricing representations contravene the single price requirement in s 48 of the Australian Consumer Law

Ratio Decidendi

The representations made by Coastal Contacts—namely as to percentage savings, prices of products, free shipping, lowest price guarantees, and identical products—were likely to mislead consumers and contravened ss 18 and 48 of the Australian Consumer Law, especially where sponsored links targeted consumers searching for Specsavers' products. Although some undertakings by Coastal Contacts addressed particular claims, sufficient risk of consumer confusion remained to warrant interlocutory injunctive relief.

Court Disposition

Interlocutory relief granted; parties to bring in short minutes to give effect to reasons

Orders

  • The parties are directed to bring in short minutes to give effect to the reasons for judgment.
  • Costs of the interlocutory application to be costs in the cause.