Australian Competition and Consumer Commission v Black on White Pty Ltd

Black on White Pty Ltd, trading as ‘The Paper Store’, was found to have contravened the Australian Consumer Law by engaging in misleading or deceptive conduct in relation to its pricing practices. The Australian Competition and Consumer Commission (ACCC) brought proceedings against Black on White in the Federal Court of Australia. The dispute centred on whether Black on White had misled consumers by displaying price tags on its products that did not reflect the actual price consumers would pay. The ACCC alleged that Black on White’s conduct was misleading because the displayed prices included additional charges that were not disclosed to consumers upfront.

The court had to determine whether Black on White’s conduct constituted misleading or deceptive conduct under section 18 of the Australian Consumer Law. The primary issue was whether the additional charges, which were not disclosed at the point of sale, were sufficient to render the conduct misleading or deceptive. The court also needed to consider whether Black on White had made a genuine effort to comply with the law and whether there was a reasonable basis for the company’s pricing practices.

The Federal Court found that Black on White’s conduct did indeed constitute misleading or deceptive conduct. The court held that the additional charges were significant and not adequately disclosed to consumers, thereby misleading them about the true cost of the products. The court emphasised the importance of transparency in pricing to protect consumers from being misled. The court also rejected Black on White’s argument that the additional charges were reasonable and necessary, finding that the company had not provided a reasonable basis for its pricing practices. Consequently, the court found in favour of the ACCC.