Director of Consumer Affairs Victoria v Dimmeys Stores Pty Ltd

The matter before the court involved the Director of Consumer Affairs Victoria and Dimmeys Stores Pty Ltd, with the Director seeking injunctions under the Australian Consumer Law (ACL) to prevent Dimmeys from engaging in conduct that had led to ACL contraventions. Additionally, the Director sought a six-year disqualification of Mr Zappelli, a director of Dimmeys, from managing corporations. The respondents did not object to the form of the injunctions but opposed the disqualification order, arguing it should not extend beyond Dimmeys. They proposed Mr Zappelli provide an undertaking to cease acting as a director of Dimmeys within 30 days and refrain from seeking re-appointment for six years.

The legal issues addressed by the court included whether injunctions should be granted to prevent future contraventions of the ACL and the appropriate scope of a disqualification order for Mr Zappelli. The court considered the principles guiding disqualification orders under the predecessor provision to s 248 of the ACL and noted that such orders were not purely protective but could be punitive. The court also evaluated whether the disqualification should be general or limited to Dimmeys, taking into account Mr Zappelli's wider business interests. The court referenced previous cases to guide its decision, particularly focusing on the appropriateness of the disqualification period and the potential administrative process for relief from disqualification in respect of certain companies.

In conclusion, the court found it appropriate to grant the injunctions as proposed by the Director to prevent future contraventions of the ACL. Regarding the disqualification of Mr Zappelli, the court determined that a six-year disqualification order was appropriate, despite the respondents' opposition to a general disqualification. The court acknowledged that Mr Zappelli could apply to the Australian Securities and Investments Commission for relief from the disqualification in respect of certain companies, allowing him to continue managing private family companies and similar entities. The orders included injunctions against Dimmeys engaging in the specified conduct and a six-year disqualification for Mr Zappelli from managing corporations.