Elna Australia Pty Ltd v International Computers (Aust) Pty Ltd (No 2)

The Trade Practices Commission (TPC) sought an injunction against Glo Juice Company Pty Ltd for breaching the Trade Practices Act, 1974. The TPC alleged that Glo Juice supplied orange fruit juice drink products that contained less orange juice than stated on the labels. The case involved a dispute over the appropriate form of injunctive relief, specifically whether the injunction should be narrowly tailored to the proven breaches or if it should cover other conduct that might be in breach of the Act but was not alleged in the Statement of Claim. The legal issues centered on the principles guiding the drafting of injunctions and the appropriate scope of relief given the industry practices and standards involved.

The court examined the industry practice of reconstituting orange juice from concentrate, which often resulted in varying levels of orange juice content. The TPC argued for a wide injunction that would prevent any under-dilution of orange juice, while Glo Juice contended that such an injunction would be overly broad and potentially unjust. The court noted that while the TPC had proven some breaches, it had not shown that the industry practice of reconstitution to a standardized strength (ten degrees Brix) would constitute a contravention of the Act. The court emphasized that the consequences of a breach should not be converted into the penalties for contempt of court and that contempt proceedings should not be used to determine whether a contravention of the Act has occurred.

Considering the discretion of the court in framing injunctions, the judge decided against a wide form of injunction that might expose Glo Juice to contempt for conduct not directly related to the proven breaches. Instead, the judge opted for an injunction that specifically addressed the conduct proven to be in breach while avoiding broader, unresolved issues. The injunction was to be tailored to ensure clarity and fairness, reflecting the need for precise and appropriate terms to avoid potential injustices. The court ultimately decided to stand the matter over to allow the parties to submit further arguments on the draft order and its effective date.

The court ordered that Glo Juice be restrained from representing in trade or commerce that its orange fruit juice drink products contain a certain percentage of orange juice unless it has diligently obtained the most accurate and up-to-date information from its suppliers to calculate the correct amount of water required for reconstitution. This information should ensure that the strength of the product meets the stated label claims. The date for the injunction's effective commencement and questions of costs were reserved for further consideration.