Unique International College Pty Ltd v Australian Competition and Consumer Commission [2018] FCAFC 155

Unique International College Pty Ltd v Australian Competition and Consumer Commission [2018] FCAFC 155

There was insufficient evidence to establish the existence of an unconscionable system of conduct or pattern of behaviour by Unique International College for the purposes of s 21 of the ACL. Evidence from six named consumers did not constitute a representative sample of the over 3,600 students, with no evidence of how they were chosen or whether their cases could be extrapolated to a systemic conclusion. Consequently, the prior declaration regarding a contravention by a system must be set aside.

Parties
Appellant: Unique International College Pty Ltd; First Respondent: Australian Competition and Consumer Commission; Second Respondent: Commonwealth of Australia
Jurisdiction
Australia
Judgment Date
19 September 2018
Procedural Posture
Appeal / Full Court Judgment
Outcome
Appeal allowed; cross-appeal dismissed
Legal Topics
Unconscionable Conduct, VET FEE HELP Scheme, System of Conduct or Pattern of Behaviour, Burden of Proof, Statutory Interpretation
Consumer Law Commercial Law Unconscionable Conduct VET FEE HELP Scheme System of Conduct or Pattern of Behaviour Burden of Proof Statutory Interpretation

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Parties

Unique International College Pty Ltd

Appellant

Australian Competition and Consumer Commission

First Respondent

Commonwealth of Australia

Second Respondent

Procedural Posture

Appeal / Full Court Judgment

Legal Issues

  1. 1 Whether Unique International College engaged in an unconscionable system of conduct or pattern of behaviour under s 21 of the Australian Consumer Law
  2. 2 What evidence is necessary to establish a system or pattern of behaviour for the purposes of s 21(4) ACL
  3. 3 Whether findings about individual consumers supported the existence of a system case

Ratio Decidendi

There was insufficient evidence to establish the existence of an unconscionable system of conduct or pattern of behaviour by Unique International College for the purposes of s 21 of the ACL. Evidence from six named consumers did not constitute a representative sample of the over 3,600 students, with no evidence of how they were chosen or whether their cases could be extrapolated to a systemic conclusion. Consequently, the prior declaration regarding a contravention by a system must be set aside.

Court Disposition

Appeal allowed; cross-appeal dismissed

Orders

  • The appeal be allowed.
  • Declaration 1 of the orders of Perram J made on 8 November 2017 be set aside.