Australian Competition and Consumer Commission v Swishette Pty Ltd

The Australian Competition and Consumer Commission (ACCC) brought proceedings against Swishette Pty Ltd, alleging breaches of the misleading or deceptive conduct and unconscionable conduct provisions of the Australian Consumer Law. This case was heard in the Federal Court of Australia, where the ACCC sought a consumer redress order against the respondents, including Letore, for their involvement in the contraventions. The central dispute was whether it was unreasonable for the ACCC not to include these claims in an earlier proceeding where the contraventions were first alleged.

The court had to decide if it was unreasonable for the ACCC not to have included the current claims in the earlier proceeding, a question of issue estoppel, particularly Anshun estoppel. The respondents argued that since the contraventions were already subject to the earlier proceeding, the ACCC should not be allowed to pursue them again. Additionally, the court considered whether the respondents were "involved" in the contraventions, requiring an examination of their knowledge and actions concerning the contravener. The ACCC contended that the respondents' financial and directorship ties to the contravener rendered them knowingly involved.

The court ruled that it was not unreasonable for the ACCC to pursue the current claims despite the earlier proceeding, as the issues and facts of the current proceeding were distinct. The court found that the respondents were indeed "involved" in the contraventions, based on the director's imputed knowledge and the respondents' financial contributions. Consequently, the court ordered Letore to compensate the clients of Clinica for payments related to the Clinica Program, Regional Sponsorship Agreements, and Cleaning Course, including interest. The court also mandated that a copy of the judgment be retained for enforcement purposes and directed the parties to submit written submissions on ancillary orders and costs within seven days.