Houghton v Arms

The appeal concerned the application of state and federal consumer protection legislation to the conduct of employees of a corporation. The appellants, employees of a company, were alleged to have made misleading or deceptive statements to the respondent. The respondent had sued the corporation under section 52 of the *Trade Practices Act 1974* (Cth) for contravention by reason of the appellants' conduct. The respondent also sued the appellants personally under section 9 of the *Fair Trading Act 1999* (Vic).

The High Court of Australia was required to determine two principal legal issues. First, whether each appellant constituted a "person" for the purposes of section 9 of the *Fair Trading Act 1999* (Vic). Second, whether the conduct of each appellant could be considered to have occurred "in trade or commerce" within the meaning of section 9 of the State Act, particularly in light of the concurrent operation of the *Trade Practices Act 1974* (Cth). The court also considered whether the State Act should be construed to exclude application to individuals whose conduct was engaged in on behalf of a corporation, given the differences in accessorial liability provisions between the two Acts.

The High Court held that the conduct of the appellants contravened section 9 of the *Fair Trading Act 1999* (Vic). The court reasoned that the appellants were persons engaged in trade or commerce, and their conduct fell within the scope of the State Act. The court dismissed the appellants' challenge to the Full Court's decision.

The appeal was dismissed, and the appellants were ordered to pay the costs of the respondent.