ACCC v Harbin Pty Ltd

The Australian Competition and Consumer Commission (ACCC) brought proceedings against Harbin Pty Ltd in the Federal Court of Australia, seeking relief for the alleged misleading conduct of Harbin in advertising the sale price of a Rio Grand Barbecue. Harbin advertised the barbecue at a sale price of $99.00 with a strikethrough price of $299.99, suggesting a saving of $200.99. However, the ACCC argued that the original price was less than $299.99, and thus the savings were overstated.

The primary legal issues the court had to address were whether Harbin's advertising constituted misleading or deceptive conduct under sections 52 and 53(e) of the Trade Practices Act 1974 (Cth), and if so, what appropriate remedies should be imposed. The court needed to determine whether an injunction, corrective advertising, and costs were warranted. The court also considered the adequacy of Harbin's compliance program and whether it had genuinely attempted to comply with the Act.

The court found that Harbin had indeed engaged in misleading conduct by overstating the savings in its advertisement. However, the court determined that an injunction was not appropriate in this instance as Harbin had already demonstrated a willingness to change its procedures and the contravention was unintentional. The court did, however, order corrective advertising to be published in The Advertiser newspaper to correct the misleading impression created by the original advertisement. The court further ordered Harbin to pay the ACCC's costs and directed that a copy of the orders and reasons be served on Harbin's auditor and the ACCC notified within 14 days.

In conclusion, the court made a declaration of misleading conduct, ordered corrective advertising, and directed Harbin to pay the ACCC's costs. The court did not impose an injunction, finding other means more appropriate to address Harbin's compliance shortcomings.