Australian Competition and Consumer Commission v Titan Marketing Pty Ltd

The Australian Competition and Consumer Commission (ACCC) brought proceedings against Titan Marketing Pty Ltd (Titan) and Paul Giovanni Okumu (Oku) in the Federal Court of Australia. The ACCC alleged that Titan, a company involved in door-to-door sales of first aid kits, and Oku, its director and manager, contravened several provisions of the Australian Consumer Law (ACL). The contraventions included making false and misleading representations, engaging in unconscionable conduct, and breaching specific provisions relating to unsolicited consumer agreements. The respondents admitted to the contraventions and the parties filed a joint statement of agreed facts and admissions. On 11 June 2014, Justice Rangiah made a series of orders against Titan and Oku, which were agreed upon by the respondents. The court's reasoning was based on the systemic nature of the contraventions, the deliberate targeting of vulnerable consumers, and the significant mitigating factor of the respondents' cooperation with the ACCC. Justice Rangiah considered the need for general and specific deterrence, the maximum penalties permitted under the ACL, and the systemic nature of the unconscionable conduct engaged in by Titan. The court concluded that it was appropriate to impose a pecuniary penalty of $750,000 on Titan and $50,000 on Oku, along with the declarations and injunctions agreed upon by the parties.

The final orders included declarations of contraventions, injunctions preventing certain conduct, and pecuniary penalties. Titan was ordered to pay $750,000 in pecuniary penalties and $100,000 towards the ACCC's costs. Oku was ordered to pay $50,000 in pecuniary penalties and $20,000 towards the ACCC's costs. Additionally, Titan was required to deliver first aid kits to specified communities and Oku was disqualified from managing corporations for five years.