Australian Competition and Consumer Commission v Thorn Australia Pty Ltd

In the Federal Court of Australia, the Australian Competition and Consumer Commission brought an action against Thorn Australia Pty Ltd for alleged contraventions of the Trade Practices Act 1974. The case concerns the adequacy of advertisements for the lease of home goods, specifically whether they correctly disclosed the total rent payable over the lease term. The central issue is whether the advertisements complied with section 53C of the Act, which mandates that advertisements must show the total rent payable over the lease term if the periodic rent is specified. This case revolves around two distinct advertising campaigns: the 'Rent Two Get One Rent Free' campaign and the 'Rent, Try, Buy' campaign, both of which were conducted by Thorn Australia between October and November 2002.

The primary legal issue before the court was whether Thorn Australia's advertisements sufficiently disclosed the total rent payable over the term of the lease. The court had to determine if the advertisements complied with section 53C of the Trade Practices Act 1974, which requires that if an advertisement sets out the periodic rent payable for the lease of goods, it must also show the total rent payable over the term. The court also had to consider the agreed facts regarding the advertisements and whether they met the statutory requirements. This involved scrutinising the content and presentation of the advertisements, including television commercials, catalogues, and other promotional materials.

The court found that Thorn Australia's advertisements did not comply with section 53C of the Act. The advertisements failed to show the total rent payable over the lease term, despite setting out the periodic rent. The court accepted that the advertisements provided the periodic rent but did not include the total rent, which is a statutory requirement. Consequently, the court made orders in accordance with the minute of consent orders agreed upon by the parties, finding that there had been a contravention of section 52 of the Trade Practices Act 1974. The court also ordered Thorn Australia to take specific corrective actions to ensure future compliance with the Act.