Australian College of Natural Medicine Pty Ltd

The Australian College of Natural Medicine Pty Ltd (ACNM) and its director, Mr. David John Smith, were the respondents in proceedings brought by the Australian Competition and Consumer Commission (ACCC). The dispute concerned allegations that ACNM and Mr. Smith had engaged in misleading and deceptive conduct in contravention of the *Trade Practices Act 1974* (Cth) (now the *Competition and Consumer Act 2010* (Cth)). The matter came before Debrett Lyons in the Federal Court of Australia.

The primary legal issues before the Court were whether ACNM, through its marketing and advertising materials, had made false or misleading representations about the employment prospects and earning potential of its graduates. Specifically, the ACNM represented that graduates of its Bachelor of Health Science (Naturopathy) degree would be able to earn a "very good income" and secure employment in their chosen field. The Court was required to determine if these representations were substantiated and if they were likely to mislead consumers, particularly prospective students.

In reaching its decision, the Court considered the evidence presented regarding the actual employment outcomes and income levels of ACNM graduates. It was found that the representations made by ACNM were not supported by sufficient evidence and were likely to mislead consumers into believing that a high level of earning and employment was a realistic outcome of completing the course. The Court applied the principles of misleading and deceptive conduct under the *Trade Practices Act*, focusing on the likely effect of the representations on the target audience. The Court found that ACNM and Mr. Smith had engaged in conduct that was misleading and deceptive.

The Court ordered that ACNM and Mr. Smith pay pecuniary penalties and be restrained from making similar representations in the future.