Australian Competition and Consumer Commission v IMB Group Pty Ltd (in liq)

The Australian Competition and Consumer Commission brought proceedings against IMB Group Pty Ltd, in liquidation, concerning alleged breaches of consumer protection laws. The case was heard by the Federal Court of Australia. The Commission alleged that IMB engaged in misleading or deceptive conduct and unconscionable conduct by selling investment policies to the public and misrepresenting the likelihood of the rugby league team's entry into a national competition and the potential profits from the development of an entertainment and sporting club.

The primary legal issues before the court were whether IMB's conduct constituted misleading or deceptive conduct and whether it was unconscionable. The court needed to determine the nature of the representations made by IMB, whether these representations were misleading, and whether IMB acted in a way that was unjust and oppressive of the investors.

The court found that IMB did engage in misleading and deceptive conduct. The representations made by IMB about the certainties of the rugby league team entering a national competition and the profitability of the associated developments were not supported by any reliable evidence and were therefore misleading. The court also determined that IMB's conduct was unconscionable as it took advantage of the public's trust and exploited their hopes and aspirations for financial gain. Given the nature of the investments and the vulnerable position of the investors, the court held that IMB's actions were unjust and oppressive.

The court issued orders against IMB, including a declaration that IMB had engaged in misleading or deceptive conduct and unconscionable conduct, and that certain representations were false or misleading. The court also ordered that IMB be prohibited from engaging in similar conduct in the future and that the liquidator be authorised to seek further orders against IMB and its directors.