Australian Competition and Consumer Commission v Spreets Pty Ltd

The Australian Competition and Consumer Commission (ACCC) brought an action against Spreets Pty Ltd in the Federal Court of Australia, alleging that Spreets had engaged in misleading conduct in breach of sections 18 and 29 of the Australian Consumer Law (ACL). The ACCC sought various orders, including declarations, civil penalties, non-punitive orders, and costs. The central issues for the court were whether Spreets had indeed engaged in misleading conduct and, if so, what penalties and other relief should be imposed.

The court examined the nature of the misleading conduct, which involved misrepresentations about the price of deals, consumer guarantees, voucher redemption, and remedies. The court found that Spreets had admitted to the conduct and contraventions of the ACL as alleged by the ACCC. The ACCC and Spreets reached an agreement on the facts and the terms of the relief to be ordered by the court. The court considered various factors in determining the appropriate penalty, including the deliberateness of the contravention, the effect on the market, and the degree of cooperation with the ACCC. The court found that a penalty of $600,000 was appropriate, taking into account the totality of the contravening conduct and the need for general and specific deterrence.

In conclusion, the court ordered Spreets to pay a pecuniary penalty of $600,000 and the ACCC's costs of $25,000. The court also ordered Spreets to maintain its existing compliance practices for a period of three years. The decision underscores the importance of general and specific deterrence in setting penalties for breaches of consumer protection laws.