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 |
|
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.
- AGLC
- Guthrie, Terence James v Universal Telecasters Queensland Ltd [1977] FCA 99
- Case
- [1977] FCA 99
- Decision Date
CaseChat Overview and Summary
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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