Australian Competition and Consumer Commission v Chrisco Hampers Australia Limited (No 2)

Case

[2016] FCA 144

1 March 2016


Details
AGLC Case Decision Date
Australian Competition and Consumer Commission v Chrisco Hampers Australia Limited (No 2) [2016] FCA 144 [2016] FCA 144 1 March 2016

CaseChat Overview and Summary

In the matter of Australian Competition and Consumer Commission v Chrisco Hampers Australia Limited (No 2), the Australian Competition and Consumer Commission (ACCC) sought remedies for Chrisco Hampers Australia Limited's (Chrisco) contravention of the Australian Consumer Law (ACL). Specifically, the ACCC sought declarations, an injunction, and pecuniary penalties. The court was required to determine the appropriate declarations, whether an injunction was warranted, and the appropriate amount of penalty. The court had to weigh the seriousness of the contraventions, the number of contraventions, the extent of Chrisco's cooperation, and the profit made from the contraventions.

The court found that the declarations should be made as sought by the ACCC, albeit with an opportunity to reformulate the second declaration. An injunction was not warranted as it would not address the contraventions or provide an adequate remedy. The court considered the factors necessary for specific and general deterrence, the need for the penalty to be significant, and the mitigating factors such as Chrisco's cooperation and the absence of significant consumer loss. The court concluded that the appropriate penalty was $200,000. The ACCC's application for costs was also considered, and the court ordered that Chrisco pay one-third of the ACCC's costs.

The court made several orders. First, Chrisco was ordered to pay a pecuniary penalty of $200,000. Second, the ACCC was required to provide a minute of proposed declarations by a specified date. Finally, the matter was relisted for further submissions concerning costs.
Details

Areas of Law

  • Consumer Law

Legal Concepts

  • Contract Formation

  • Unconscionable Conduct

  • Misrepresentation

  • Compensatory Damages

  • Civil Penalty