Krishnan v Estee Lauder Pty Ltd

The case of Krishnan v Estee Lauder Pty Ltd involves a dispute between the applicant, Ms Krishnan, and the respondent, Estee Lauder Pty Ltd, over allegations related to the advertising of certain skincare products. Ms Krishnan brought an action in the Federal Court seeking damages for what she claims to be misleading representations made by Estee Lauder Pty Ltd regarding the ingredients and benefits of its Clinique brand skincare products. The court was tasked with deciding whether the applicant had any reasonable prospect of successfully prosecuting her claims against the respondent, whether the proceeding was frivolous or vexatious, and whether the alternative pleadings should be struck out.

The court examined the evidence provided by both parties and considered whether Ms Krishnan's claims had any reasonable prospect of success. The respondent submitted that the claims were based on hyperbole and were therefore flawed. The court found that Ms Krishnan's claims were exaggerated and lacked substance, which obscured the actual claims she was making. The court further noted that the respondent had admitted to an inadvertent error in the advertising of the product on its website, which it had promptly rectified. Based on these findings, the court concluded that Ms Krishnan's claims had no reasonable prospect of success and that the proceeding was frivolous.

Following the analysis, the Federal Court entered judgment in favour of Estee Lauder Pty Ltd pursuant to s 31A(2) of the Federal Court of Australia Act 1976 (Cth) and r 26.01 of the Federal Court Rules 2011 (Cth). The court ordered that Ms Krishnan pay the respondent's costs of and incidental to the interlocutory application dated 3 December 2021, with the costs to be assessed by a registrar of the Court on a lump sum basis if not agreed. The court also granted liberty to apply with respect to any issue that arises relating to the manner of payment of the sum referred to in the undertaking.