Noone (Director of Consumer Affairs Victoria) v Operation Smile (Australia) Inc

The case before the court involved the Director of Consumer Affairs Victoria, represented by Noone, and Operation Smile (Australia) Inc. The dispute centred on the charitable status of Operation Smile and its fundraising practices. The matter was heard in the Federal Court of Australia. The Director alleged that Operation Smile was engaging in conduct that misled the public about the proportion of funds donated that were used for charitable purposes, thereby contravening the Australian Consumer Law.

The primary legal issues for the court to resolve were whether Operation Smile had breached the Australian Consumer Law by misleading consumers about the proportion of funds raised that were used for charitable activities. Additionally, the court needed to determine whether Operation Smile was a charity for the purposes of the Charitable Fundraising Act 1991 (Cth), and if its fundraising activities were exempt from certain provisions of the Australian Consumer Law.

The court found that Operation Smile had indeed misled consumers by suggesting that a higher proportion of funds were used for charitable purposes than was the case. This was determined by examining the advertising and fundraising materials used by Operation Smile. The court also held that Operation Smile was not a charity under the Charitable Fundraising Act 1991 (Cth), as it did not meet the criteria for charitable status. Consequently, Operation Smile's fundraising activities were not exempt from the provisions of the Australian Consumer Law. The court ordered Operation Smile to cease its misleading conduct and to take steps to correct any misleading statements made to the public.