Australian Consumer and Competition Commission v Salecomp Pty Ltd

The Australian Consumer and Competition Commission (ACCC) brought proceedings against Salecomp Pty Ltd in the Federal Court of Australia for making misleading representations to consumers regarding their rights under the Australian Consumer Law (ACL). The case involved seven oral statements made by Salecomp’s staff to a customer, Mr Gobbett, concerning the replacement or refund of two potentially faulty laptops. The court had to determine the appropriate penalty and orders to be imposed on Salecomp for contravening the ACL.

The legal issues included the nature, extent, and duration of the conduct, whether it was deliberate, the amount of loss caused to the consumers, whether similar prior conduct had occurred, and the involvement of senior employees or management. The court also had to consider the appropriate penalty to deter Salecomp and other retailers from engaging in similar conduct in the future.

The court found that Salecomp’s conduct, while not deliberate, was misleading and deceptive in contravention of sections 18 and 29(1)(m) of the ACL. The court imposed several orders, including a declaration of contravention, an injunctive relief prohibiting Salecomp from making similar representations, a pecuniary penalty of $28,000, a requirement for Salecomp to display a summary of consumer rights under the ACL at the point of sale for three years, and an order for Salecomp to establish a compliance program. The court took into account Salecomp’s cooperation, contrition, and the absence of loss to the consumers in determining the penalty.

In conclusion, the court ordered Salecomp to make declarations, provide injunctive relief, pay a pecuniary penalty, display a notice of consumer rights, and establish a compliance program. The court found that the penalty and other orders were sufficient to deter Salecomp and other retailers from engaging in similar conduct in the future.