TPG Internet Pty Ltd v Australian Competition and Consumer Commission

TPG Internet Pty Ltd appealed against a decision of the Federal Court of Australia which found it had engaged in misleading or deceptive conduct under section 18 of the Australian Consumer Law by advertising its internet services without disclosing that the advertised speeds were only available to a limited number of customers. The Australian Competition and Consumer Commission brought the proceeding against TPG Internet, which was ultimately found liable and ordered to pay penalties and costs.

The primary issues for the court were whether the advertisements were misleading or deceptive and if the penalty imposed was appropriate. The court had to determine if the ads breached the consumer law and if so, whether the penalty was excessive or showed an error in the application of the law.

The court found that the advertisements were indeed misleading or deceptive because they did not accurately represent the availability of the advertised speeds. The primary judge’s findings were upheld. However, the penalty was deemed to be excessive. The appeal was allowed in part, and the court ordered the parties to negotiate a minute of proposed relief. If the parties could not agree, they were granted liberty to apply to relist the appeal for submissions on the question of penalty and any consequential relief. The court did not find an appellable error in the penalty imposition as it was within the discretionary range of the court.