Wendy Lister (555421 in the Name of Dion Michael Brown) v Stingray Surf Company Pty Ltd

The applicant, Wendy Lister, brought proceedings against the respondent, Stingray Surf Company Pty Ltd, in the Federal Court of Australia. The dispute concerned the respondent's alleged contravention of section 18 of the Australian Consumer Law (ACL), which prohibits misleading or deceptive conduct in trade or commerce. The applicant sought an injunction and damages.

The primary legal issue before the court was whether the respondent's conduct in marketing and selling its "Stingray" brand surfboards was misleading or deceptive, thereby contravening section 18 of the ACL. Specifically, the court had to determine if the representations made by the respondent regarding the origin and quality of its surfboards led consumers to form an incorrect belief about the product.

The court found that the respondent had engaged in misleading and deceptive conduct. It reasoned that the prominent use of the word "Stingray" on the surfboards, coupled with marketing materials that suggested a connection to a well-known, high-quality surfboard manufacturer, created a false impression of origin and quality. The court applied the principles established in cases concerning misleading representations, focusing on the overall impression conveyed to the ordinary consumer. The court concluded that the average consumer, acting reasonably, would likely have been misled into believing the surfboards were of a superior standard or origin than they actually were.

The court ordered that the respondent be permanently restrained from representing that its surfboards were manufactured by or associated with a particular high-quality surfboard manufacturer. The court also awarded damages to the applicant, the quantum of which was to be determined at a later stage.