Luxottica Retail v Specsavers

Case

[2010] NSWSC 37

20 January 2010


Details
AGLC Case Decision Date
Luxottica Retail v Specsavers [2010] NSWSC 37 [2010] NSWSC 37 20 January 2010

CaseChat Overview and Summary

Luxottica Retail, an Italian-based eyewear company, brought an action against Specsavers, an Australian optical retailer, in the Federal Court of Australia. The dispute centred around an alleged misleading and deceptive comparison advertisement that Specsavers ran in television commercials. The plaintiff contended that the advertisement was misleading and deceptive, as it compared its products unfavourably to those of the plaintiff. Luxottica Retail sought interlocutory injunctive relief to prevent Specsavers from continuing the advertisement until the case was resolved.

The court was required to decide whether a serious question was to be tried regarding the misleading and deceptive conduct by Specsavers and if the balance of convenience favoured granting the injunctive relief. The court had to determine whether there was a likelihood that the plaintiff would succeed in its claim of misleading and deceptive conduct under the Trade Practices Act 1974 (Cth) and whether the plaintiff would suffer irreparable harm if the injunction was not granted.

The court found that there was a serious question to be tried regarding the misleading and deceptive conduct by Specsavers, as the comparison in the advertisement was likely to mislead consumers into believing that the plaintiff's products were inferior to those of Specsavers. The court also found that the balance of convenience favoured granting the injunctive relief, as the plaintiff would suffer irreparable harm if the advertisement continued to run without restraint. Consequently, the court granted the interlocutory injunction, restraining Specsavers from continuing the advertisement.
Details

Areas of Law

  • Commercial Law

  • Tort Law

Legal Concepts

  • Misleading and Deceptive Conduct

  • Injunction

  • Comparative Advertising