Ascot Four Pty Ltd v Australian Competition and Consumer Commission

Ascot Four Pty Ltd appealed against a decision of the Federal Court of Australia, which had ruled that the company had breached section 46 of the Australian Consumer Law. The Australian Competition and Consumer Commission (ACCC) had brought the proceeding against Ascot Four, alleging that the company had engaged in misleading or deceptive conduct by promoting a property investment scheme without disclosing the significant risks involved. The primary judge found that Ascot Four had contravened the law and ordered it to pay a penalty.

The appeal raised questions about the interpretation of section 46 of the Australian Consumer Law and the scope of the misleading or deceptive conduct prohibition. Ascot Four argued that the conduct in question did not amount to a misleading or deceptive representation, as the risks had been disclosed in a separate document that was available to potential investors. The company also contended that the conduct fell outside the scope of section 46 because it did not involve any representation about a matter relating to goods or services.

The High Court rejected the appeal, holding that the primary judge's findings were supported by the evidence. The Court found that Ascot Four had made representations about the risks involved in the property investment scheme, and that these representations were misleading because they did not disclose the full extent of the risks. The Court also held that the conduct fell within the scope of section 46, as it involved a representation about a matter relating to services, namely the investment services provided by Ascot Four. The appeal was dismissed, and the appellant was ordered to pay the respondent's costs.