Australian Competition & Consumer Commission v Goldstar Corp Pty Ltd

The Australian Competition & Consumer Commission brought proceedings against Goldstar Corp Pty Ltd and its director, Grant Warren Hudson, in relation to alleged misleading conduct in connection with the supply of advertising. The proceedings were heard in the Federal Court of Australia. The central issue before the Court was whether the respondents had breached court undertakings not to engage in the alleged misleading conduct. The Court had to determine whether the evidence established that the respondents had indeed contravened the terms of the undertakings given to the Court.

The Court found that the respondents had breached the undertakings by instructing an employee to engage in misleading conduct. The Court accepted the evidence that the respondents had directed the employee to represent to persons that advertisements or directory entries had been previously ordered or agreed to, when this was not the case. The Court also found that the respondents had sent documents that were likely to mislead the recipients as to the effect of signing or returning those documents. The Court concluded that the evidence established that the respondents had knowingly been involved in the misleading conduct.

The Court ordered that Hudson be imprisoned for two months for contempt of court. The Court also ordered that Goldstar Corp Pty Ltd be fined $10,000. Both respondents were ordered to pay the Commission's costs on an indemnity basis. The Court further ordered that the warrant for Hudson's imprisonment lie in the registry, provided that he refrained from contravening any of the provisions of Part V of the Trade Practices Act 1974 (Cth) for two years, and from being knowingly involved in the contravention by anyone else. The Court also ordered that each respondent pay the Commission's costs of and incidental to the application for interlocutory injunctive relief, and that the Commission have liberty to tax those costs forthwith.