Guthrie, Terence James v Universal Telecasters Queensland Ltd

Case [1977] FCA 99


1. The defendapt company is convic ted .

2. The defendant company is t o pay a p e n a l t y of

$2 ,000 (two thousan

d o l l a r s ) .

3. Thc defendant company is t o pay the in fo rmap t ' s costs.

It w a s alleged, by way

of

part icu. l .ay-s ,

that the statements

were

misleading i n t h a t the words meant

t h a t the

e x i s t e n c e

of a '

reducticn

i n price

i n such

vehic les would not

c o n t i n u e

a f t e r 30 Apri l ,

1975 so that

a

purchaser

a f t e r t h z t d a t e

would have

t o pay

an a d d i t i o n a l $335 i n sales t a x on

s u c h a vehicle whereas

the true p o s i t i o n was

t h a t a

r e d u c t i o n in price was

to cont inue though

at

a reduced

antoun t

.

2

t h a t thc

r e p e t i t i o n of

a

mis l - ead ing s-tatenlent made

by

.

s o ~ n c

other. person

is not

an of fence .

S e c t i o n 8 5 ( 3 ) ,

to which

I

advert

l a t e r , i s s u f f i . c i r ? n t t o deal

with

this

a r g u m e n t ,

if

t he plai.11 words

of

t he

s e c t i o n were

not

s u f f i c i e n t .

3

con travealiion of

the T r a c k Practices A c t .

s t a t i on Channcll

0

i n Brislsano.

Terry Garry,

the sales manager of

the t e lev is ion s - t a t ion .

H e informed PSr.

Garry tha t

the advertisement was misleading,

" i n as much a s sales t a x would not increase by

$ 3 3 5 on

the Falcon i n Mayt'.

Mr. Garry questioned Mr. Pakerson

as to h i s Icnowlcclge of

s a l e s t a x and the

l a t t e r replicd

awarenes.5

of

the

sales t a x pos i t ion .

NI:.

Ga r ry

s a i d t h a t

s p s c i f y the na tu re of

.the complaint .

Mr.

Garry s e n t by

p o s t a script of

the advert isement t o Mr.

Wise.

On

.

. /5

S

an

it i s t.o publ.ish or a r r a n g e for the publicaticn

of advcrti.semcnts and t h a t he received the

d

adver-tiscn!t?nt f o r publication

in t h e ordinary

course of business and d i d not know and had 110

reason to suspec t t'llat i t s publication would

G

t o sales t ax af- ter 30 April, 1975.

booklet

whicll

v~ouLd. nppca-r t o o b t a i n a n adccpcte

surrmary

of P a r t s IV anc? V of the Act.

A c t but i t is n o t clear: when he did so.

. .

. -

tha t the contcnts of

an advcrtiscn-.ent w e r e misl.ead.ing,

that complaint

should be irrmediately referred

t o the

person o r persons whose duty it was to takc

precaut ions

t o avoid

contravention of the

Act.

Further, the obvious

precaution

of

i n s i s t i n g upon

adver-tisef's ve r i fy ing the

factual cont.cnt of t h e i r advertisements s?loald have been

8

1975.

Details
AGLC
Guthrie, Terence James v Universal Telecasters Queensland Ltd [1977] FCA 99
Case
[1977] FCA 99
Decision Date

CaseChat Overview and Summary

Terence James Guthrie has brought an action against Universal Telecasters Queensland Ltd in relation to allegedly misleading advertisements published by the company. The plaintiff argues that the advertisements were misleading as they implied that a reduction in the price of vehicles would cease after April 30, 1975, which was not the case. The plaintiff further contends that the reduction in price would continue, albeit at a reduced amount. Consequently, the plaintiff claims that the advertisements induced him to purchase a vehicle on April 18, 1975, when he would have otherwise deferred his purchase until after May 1, 1975, to avoid an additional $335 in sales tax. The court must decide whether the advertisements were indeed misleading and whether the company breached the Trade Practices Act.

The court must determine if the advertisements were misleading as alleged by the plaintiff. Specifically, the court examines whether the advertisements implied that the price reduction would cease after April 30, 1975, and whether this led to the plaintiff purchasing the vehicle on April 18, 1975, to avoid additional sales tax. Additionally, the court considers whether the company had a duty to verify the factual content of the advertisements and whether the company breached the Trade Practices Act by publishing misleading advertisements. The court also examines the argument that repeating a misleading statement made by someone else does not constitute an offence under the Act.

The court found that the advertisements were misleading as they implied that the price reduction would cease after April 30, 1975, which was not true. The court determined that the company had a duty to verify the factual content of the advertisements and failed to do so, leading to the publication of misleading advertisements. The court held that the company breached the Trade Practices Act. Consequently, the court ordered the company to pay a penalty of $2,000 and to cover the plaintiff's costs. The court found that the repetition of a misleading statement by another person did not absolve the company of liability under the Act.

Orders

Orders of the court

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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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