Australian Competition and Consumer Commission v Meriton Property Services Pty Ltd (No 2)

Case

[2018] FCA 1125

31 July 2018


Details
AGLC Case Decision Date
Australian Competition and Consumer Commission v Meriton Property Services Pty Ltd (No 2) [2018] FCA 1125 [2018] FCA 1125 31 July 2018

CaseChat Overview and Summary

The Australian Competition and Consumer Commission (ACCC) sued Meriton Property Services Pty Ltd, alleging that the latter had engaged in misleading and deceptive conduct in contravention of sections 18 and 34 of the Australian Consumer Law (ACL). The case was heard by the Federal Court of Australia, which found Meriton liable for the alleged conduct. The court then proceeded to determine the appropriate relief. The ACCC sought declarations, a pecuniary penalty, an injunction, and a compliance program. The key legal issues were whether declarations should be made, the appropriate number of contraventions and maximum penalty, the relevant mandatory considerations, and the appropriate form of the compliance program.

The court held that declarations were appropriate as they served the public interest in corporations observing the ACL, recorded the court's disapproval of the conduct, and assisted the ACCC as a regulator. The court found that Meriton had committed thousands of contraventions, each attracting a penalty of up to $1.1 million. However, the court did not impose the maximum penalty, taking into account the relevant mandatory considerations and other factors. The court ordered Meriton to pay a pecuniary penalty of $3 million, issued an injunction to prevent future contraventions, and mandated the establishment of a compliance program designed to ensure understanding and awareness of the ACL obligations among Meriton's officers and employees.

In summary, the Federal Court found Meriton liable for misleading and deceptive conduct and ordered appropriate relief, including declarations, a pecuniary penalty, an injunction, and a compliance program. The court took into account the relevant legal principles and factors in determining the appropriate penalty and relief. The decision provides guidance for other cases involving similar issues under the ACL.
Details

Areas of Law

  • Consumer Law

Legal Concepts

  • Contract Formation

  • Breach of Contract

  • Misrepresentation

  • Unconscionable Conduct

  • Compensatory Damages

  • Injunction

  • Compliance Program