Australian Competition and Consumer Commission v Australian Private Networks Pty Ltd (trading as Activ8me)

The Australian Competition and Consumer Commission (ACCC) initiated legal proceedings against Australian Private Networks Pty Ltd (trading as Activ8me) for contravening several provisions of the Australian Consumer Law (ACL) through their misleading advertising and conduct in relation to the supply of internet services. The case was resolved through a jointly-negotiated settlement, with both parties filing a statement of agreed facts and admissions, proposed declarations and orders, and joint submissions. The court was required to decide whether to approve the settlement and determine the appropriate penalty for the contraventions.

The court considered various factors in determining the appropriate penalty, including the nature and extent of the act or omission, the loss or damage suffered by consumers, and other relevant factors such as the company's size, lack of expertise in compliance, and the absence of a corporate culture conducive to compliance. The court also took into account the fact that Activ8me had not previously been found to have engaged in contraventions of the ACL and had agreed to resolve the proceeding at an early stage. Based on these factors, the court found that the proposed penalty of $250,000 was appropriate.

The court approved the settlement and made declarations and orders in accordance with the proposed declarations and orders, including declarations under section 21 of the Federal Court of Australia Act 1976, an injunction under section 232 of the ACL, a pecuniary penalty of $250,000, a publication order, a non-party consumer redress order, an ACL compliance program, and an order for Activ8me to pay the ACCC's costs in the proceeding. The court also noted that the settlement was in the public interest, as it provided a resolution to the proceeding without the need for further litigation.