Director of Consumer Affairs Victoria v Gibson (No 2)

Case [2017] FCA 366


FEDERAL COURT OF AUSTRALIA

Director of Consumer Affairs Victoria v Gibson (No 2) [2017] FCA 366

File number: VID 535 of 2016
Judge: MORTIMER J
Date of judgment: 7 April 2017
Catchwords:

CONSUMER LAW – contraventions of ss 18 and 21 of the Australian Consumer Law – injunctions, declaratory relief, costs

PRACTICE AND PROCEDURE – form of orders

Legislation: Australian Consumer Law (Vic), ss 246, 247
Cases cited: Director of Consumer Affairs Victoria v Gibson [2017] FCA 240
Date of hearing: Determined on the papers
Date of last submissions: 24 March 2017
Registry: Victoria
Division: General Division
National Practice Area: Commercial and Corporations
Sub-area: Regulator and Consumer Protection
Category: Catchwords
Number of paragraphs: 9
Counsel for the Applicant: Ms CG Button
Solicitor for the Applicant: Consumer Affairs Victoria
Counsel for the Respondents: The Respondents did not appear

ORDERS

VID 535 of 2016
BETWEEN: DIRECTOR OF CONSUMER AFFAIRS VICTORIA
Applicant
AND:

MS ANNABELLE NATALIE GIBSON

First Respondent

INKERMAN ROAD NOMINEES PTY LTD (ACN 164 850 748 (IN LIQUIDATION)

Second Respondent

JUDGE:

MORTIMER J

DATE OF ORDER:

7 APRIL 2017

PENAL NOTICE

NOTICE PURSUANT TO RULE 41.06 OF THE FEDERAL COURT RULES 2011

TO:     Annabelle Natalie Gibson
           Inkerman Road Nominees Pty Ltd (ACN 164 850 748)

IF YOU:

(A)REFUSE OR NEGLECT TO DO ANY ACT WITHIN THE TIME SPECIFIED IN THIS ORDER FOR THE DOING OF THE ACT; OR

(B)DISOBEY THE ORDER BY DOING AN ACT WHICH THE ORDER REQUIRES YOU TO ABSTAIN FROM DOING,

YOU WILL BE LIABLE TO IMPRISONMENT, SEQUESTRATION OF PROPERTY OR OTHER PUNISHMENT.

ANY OTHER PERSON WHO KNOWS OF THIS ORDER AND DOES ANYTHING WHICH HELPS OR PERMITS YOU TO BREACH THE TERMS OF THIS ORDER MAY BE SIMILARLY PUNISHED.

THE COURT DECLARES THAT:

Misleading or deceptive conduct (s 18 Australian Consumer Law (Cth) and Australian Consumer Law (Vic))

1.Annabelle Natalie Gibson engaged in conduct in trade or commerce which was misleading or deceptive or likely to mislead or deceive contrary to s 18 of the Australian Consumer Law (Vic) in that, from approximately July 2013, she made claims in connection with the development, promotion and sale of the Whole Pantry App and the Whole Pantry book that she:

(a)had been diagnosed with brain cancer in 2009;

(b)was given four months to live; and

(c)had taken and then rejected conventional cancer treatments in favour of embarking on a quest to heal herself naturally.

2.The Second Respondent engaged in conduct in trade or commerce which was misleading or deceptive or likely to mislead or deceive contrary to s 18 of the Australian Consumer Law (Cth) and s 18 of the Australian Consumer Law (Vic) in that, from about July 2013, it made claims in connection with the development, promotion and sale of the Whole Pantry App and the Whole Pantry book that Annabelle Natalie Gibson:

(a)had been diagnosed with brain cancer in 2009;

(b)was given four months to live; and

(c)had taken and then rejected conventional cancer treatments in favour of embarking on a quest to heal…

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AGLC
Director of Consumer Affairs Victoria v Gibson (No 2) [2017] FCA 366
Case
[2017] FCA 366
Decision Date

CaseChat Overview and Summary

The case of Director of Consumer Affairs Victoria v Gibson (No 2) involved the Director of Consumer Affairs Victoria suing Annabelle Natalie Gibson and another respondent for making misleading claims about Gibson's health history and treatment choices in connection with her health and wellbeing advice. The matter was heard in the Federal Court of Australia. The Director alleged that the respondents had contravened sections 18 and 21 of the Australian Consumer Law by making misleading statements that Gibson had been diagnosed with brain cancer prior to May 2016, was given four months to live, and had rejected conventional cancer treatments in favour of natural healing.

The primary legal issues the court had to resolve were whether the respondents' statements were misleading and whether the Director had the authority to seek the proposed orders under the Australian Consumer Law. The court examined the veracity of the claims made and their potential to mislead consumers. Additionally, the court needed to determine the appropriate form and scope of the orders, including whether the orders should be framed in negative or positive terms, and whether the respondents should be required to take specific affirmative steps to ensure compliance.

The court found that the respondents had indeed made misleading claims about Gibson's health history and treatment choices. It concluded that these statements were likely to mislead consumers and that the Director had the authority to seek the proposed orders. The court issued orders prohibiting the respondents from making the specified claims in connection with the promotion of health and wellbeing advice. Furthermore, it ordered Gibson to contribute $30,000 towards the applicant's costs within 60 days. The court also directed that the proceeding be adjourned to consider penalty and orders relating to public notices. The form of the orders was carefully considered to ensure they effectively prevented future misleading conduct.

Orders

Orders of the court

7. Pursuant to s 232 of the Australian Consumer Law (Vic), Annabelle Natalie Gibson is prohibited from making any or all of the following claims, in connection with the development, sale or promotion of health and wellbeing advice:

(a) that she had been diagnosed with brain cancer at any time prior to 24 May 2016;

(b) that she was given four months to live; and/or

(c) that she had taken and then rejected conventional cancer treatments in favour of embarking on a quest to heal herself naturally.

8. Pursuant to s 232 of the Australian Consumer Law (Cth) and s 232 of the Australian Consumer Law (Vic), the Second Respondent is prohibited from making any or all of the following claims, in connection with the development, sale or promotion of health and wellbeing advice:

(a) that Ms Gibson had been diagnosed with brain cancer at any time prior to 24 May 2016;

(b) that Ms Gibson was given four months to live; and/or

(c) that Ms Gibson had taken and then rejected conventional cancer treatments in favour of embarking on a quest to heal herself naturally.

9. Annabelle Natalie Gibson pay a contribution towards the applicant’s costs, fixed in the amount of $30,000, such amount to be payable within 60 days of the date of these orders.

10. A copy of these Orders be served personally on Annabelle Natalie Gibson in accordance with s 41.07 of the Federal Court Rules 2011 (Cth).

THE COURT DIRECTS THAT:

11. The proceeding be adjourned to a date to be fixed for consideration of penalty and orders relating to public notices.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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