Australian Competition and Consumer Commission v CLA Trading Pty Ltd

The Australian Competition and Consumer Commission (ACCC) brought proceedings against CLA Trading Pty Ltd, trading as Europcar, before the Federal Court of Australia. The ACCC alleged that Europcar engaged in misleading or deceptive conduct and made false or misleading representations concerning the limitation of customer liability under its standard car rental contract. Europcar admitted to these allegations, leading to a joint minute of proposed orders submitted by the ACCC and Europcar. The court was required to decide whether Europcar contravened consumer protection provisions in the Australian Securities and Investments Commission Act 2001 (ASIC Act) and to determine appropriate orders, including pecuniary penalties, declarations, costs, and publication orders.

The court considered the nature of the alleged misleading conduct and misrepresentations by Europcar, including its representations about customer liability for loss or damage under the standard car rental contract. The court found that Europcar's conduct was misleading because it failed to disclose that customers would be fully liable for loss or damage in an unlimited amount in certain circumstances, contrary to the representations made. The court held that Europcar contravened the consumer protection provisions in the ASIC Act and ordered Europcar to publish a corrective notice and pay pecuniary penalties.

The court further considered the appropriate pecuniary penalty for Europcar under s 12GBA of the ASIC Act, taking into account the relevant factors such as the gravity of the conduct, the benefit obtained or likely to be obtained by Europcar, and the need for deterrence and punishment. The court ordered Europcar to pay a pecuniary penalty of $100,000. The court also made orders for Europcar to publish a corrective advertisement in The Australian newspaper in each state or territory where Europcar has an outlet, within 21 days of the date of the order, and to pay the ACCC's costs of the proceedings in the sum of $65,000 within 30 days of the date of the order.