Commissioner for Consumer Protection v Unleash Solar Pty Ltd (in liq) (No 2)

Case

[2016] FCA 1177

30 September 2016


Details
AGLC Case Decision Date
Commissioner for Consumer Protection v Unleash Solar Pty Ltd (in liq) (No 2) [2016] FCA 1177 [2016] FCA 1177 30 September 2016

CaseChat Overview and Summary

The case before the court involved a dispute between the Commissioner for Consumer Protection and Unleash Solar Pty Ltd, a company in liquidation, along with its sole director, Mr Perdikoyiannis. The Commissioner sought default judgment against the respondents, alleging that Unleash Solar had engaged in misleading and deceptive conduct in relation to the supply and installation of solar photovoltaic systems. Specifically, the Commissioner claimed that Unleash Solar made several representations about the benefits of installing these systems that were false or misleading, including claims about the payment structure for electricity produced by the systems, the eligibility for payments under the Feed-in Tariff scheme, and the impact of the scheme's closure on consumers. Additionally, the Commissioner alleged that Unleash Solar failed to supply and install the systems within a reasonable time and did not provide a promised free item, the Powerboost solar panel cleaner. The Commissioner sought various declarations, an injunction, and pecuniary penalties against the respondents.

The court was required to decide whether the Commissioner was entitled to default judgment against the respondents and, if so, the appropriate relief, including the assessment of pecuniary penalties in the absence of a defence by the respondents. Furthermore, the court needed to determine the relevant principles in the assessment of civil pecuniary penalties under the Australian Consumer Law (ACL) and its Western Australian counterpart, the Australian Consumer Law (WA). The court also had to consider the procedural aspects of granting default judgment, particularly the requirements for service abroad.

The court found that the Commissioner was entitled to default judgment against the respondents. The court determined that Unleash Solar had failed to file a notice of address for service or a defence, and Mr Perdikoyiannis had not filed a notice of address for service. The court assessed the appropriate relief, including the pecuniary penalties, based on the evidence and submissions provided. The court imposed a pecuniary penalty of $390,000 on Unleash Solar and $145,000 on Mr Perdikoyiannis, considering the nature and extent of the contraventions, the culpability of the respondents, and the need for deterrence and punishment. Additionally, the court granted an injunction restraining Mr Perdikoyiannis from managing or being concerned in a business of promoting or supplying photovoltaic solar panel systems in Australia for three years.

In conclusion, the court made several orders, including a declaration that Unleash Solar engaged in misleading and deceptive conduct, an injunction against Mr Perdikoyiannis, and pecuniary penalties against both respondents. The court also ordered that the reasons for judgment be retained on the Court file for the purposes of section 137H of the Competition and Consumer Act 2010.
Details

Areas of Law

  • Consumer Law

Legal Concepts

  • Misleading or Deceptive Conduct

  • Breach of Contract

  • Unconscionable Conduct

  • Compensatory Damages

  • Civil Penalty

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Cases Citing This Decision

6

Cases Cited

36

Statutory Material Cited

3

Cole v Whitfield [1988] HCA 18