Mobileciti Pty Ltd v Vodafone Pty Ltd

Mobileciti Pty Ltd sought relief in the Federal Court of Australia against Vodafone Pty Ltd over allegations of misleading conduct in advertising. Mobileciti claimed that Vodafone had breached the Australian Consumer Law by making false or misleading representations in their advertising. The crux of the dispute was whether Vodafone's advertisements conveyed a false impression about their mobile plans and services, leading Mobileciti to suffer losses.

The legal issues before the court included whether Vodafone had indeed engaged in misleading conduct as defined under the Australian Consumer Law and whether Mobileciti had the right to rescind the contracts based on the alleged misleading conduct. Additionally, the court had to consider whether Mobileciti had lost or waived its right to rescind due to its conduct post-awareness of the alleged misleading representations. The court also needed to determine whether Vodafone's conduct amounted to a repudiation of the contract or a non-performance that entitled Mobileciti to terminate the contract or to demand performance.

In its judgment, the court found that Vodafone's advertisements did convey a misleading impression to consumers. The court held that Vodafone's conduct constituted misleading or deceptive conduct under the Australian Consumer Law. Regarding the right to rescind, the court concluded that Mobileciti had not lost or waived its right to rescind because its actions post-awareness of the misleading conduct did not amount to an unequivocal election to affirm the contract. The court also noted that Mobileciti had the right to either terminate the contract or to insist on performance. The court emphasised that any election must be unequivocal and that Mobileciti's actions did not meet this threshold. The court awarded damages to Mobileciti and ordered Vodafone to cease the misleading conduct.