Australian Competition and Consumer Commission v Quantum Housing Group Pty Ltd (No 2)

The Australian Competition and Consumer Commission brought proceedings against Quantum Housing Group Pty Ltd and its sole director and secretary, Ms Howe, for various breaches of the Australian Consumer Law. The parties agreed on the facts and the proposed orders, which the court was required to consider and approve. The primary legal issues were whether the company engaged in misleading and false representations, unconscionable conduct, and the appropriate quantum of penalty for the breaches.

The court found that the agreed facts demonstrated breaches of sections 18, 29, and 21 of the Australian Consumer Law. However, the court was not satisfied that the facts supported a finding of unconscionable conduct as the company's conduct did not exploit the vulnerability of the investors. The court also considered the appropriate penalty for the company and Ms Howe, finding that the proposed penalty for Ms Howe was within the permissible range. The court ordered declaratory relief, a disqualification order for Ms Howe, and pecuniary penalties for both parties. It also ordered that the reasons for judgment be sealed and retained for the purposes of section 137H of the Competition and Consumer Act.

The court ordered that Quantum Housing Group Pty Ltd pay a penalty of $700,000, and Ms Howe pay a penalty of $50,000. The court also ordered that Ms Howe be disqualified from managing a corporation for three years. The court further ordered that Quantum Housing Group Pty Ltd email each of the 1,215 investors for whom it held allocations under the National Rental Affordability Scheme, to inform them of the correct position. The court also ordered that a copy of the reasons for judgment be retained for the purposes of section 137H of the Competition and Consumer Act.