Australian Competition and Consumer Commission v Oticon Australia Pty Limited

The Australian Competition and Consumer Commission (ACCC) brought proceedings against Oticon Australia Pty Limited and Sonic Healthcare Limited (collectively referred to as the respondents) for misleading or deceptive conduct in relation to hearing aids and the Australian Government Hearing Program. The case was heard by the Federal Court of Australia, where the respondents admitted to contraventions of sections 18, 29(1)(g), 29(1)(i), and 29(1)(m) of the Australian Consumer Law (ACL). The court was required to decide on the appropriate penalty and orders to be imposed on the respondents, considering the principles of deterrence and the public importance of addressing conduct directed towards a vulnerable class, specifically elderly Australians in receipt of government pensions.

The court acknowledged the respondents' high degree of cooperation with the ACCC and the admitted contraventions. The parties proposed a settlement involving pecuniary penalties, injunctions, publication orders, consumer redress orders, compliance orders, and costs. The court examined the proposed penalty of $2.5 million, split equally between the respondents, and considered it appropriate given the circumstances. The court also noted the importance of sending a strong message of deterrence to the public, particularly concerning the conduct directed towards the vulnerable class.

In conclusion, the court accepted the agreed declarations and orders proposed by the parties, imposing a penalty of $1.25 million on each respondent, injunctions to prevent similar false representations, publication orders for corrective notices, non-party consumer redress orders, compliance orders for establishing and implementing an ACL compliance program, and orders for the respondents to notify the ACCC of compliance with certain orders. Additionally, the court ordered the respondents to pay the ACCC's costs as agreed or taxed. The court found the proposed penalty and orders to be appropriate and in line with the principles of deterrence and the public interest.