The Full Court of the Federal Court of Australia has upheld an appeal by the Australian Competition and Consumer Commission against one aspect of the orders made by Justice Perram in the matter of ACCC v MSY Technology Pty Ltd and Ors.
On 5 May 2011, the ACCC filed a Notice of Appeal in relation to Justice Perram’s decision to not grant the declarations which had been sought by the ACCC with the consent of the Respondents.
Those declarations were to the effect that MSY Technology Pty Ltd and four of its related companies had breached sections 52 and 53(g) of the then Trade Practices Act 1974 by making a number of false or misleading representations regarding the statutory warranty rights of consumers.
Justice Perram considered that he was bound by an earlier decision of the Full Federal Court which prevented him from granting declarations in circumstances where respondents to the proceeding consented to the making of those declarations.
The Full Court has today allowed the ACCC’s appeal, ruling that the Federal Court of Australia does have the power to make declaratory orders where respondents to a proceeding consent to the making of such declarations.
The Full Court also ordered that declarations be made in the terms that had been proposed by the ACCC with the consent of the respondents.
“The decision of the Full Court in this matter is an important clarification of the law in this area, as consent declarations have been made by Federal Court judges in numerous cases over many years,” ACCC Acting Chairman Michael Schaper said.
“The ACCC considers that a declaration by the court that a person has contravened the Act is an important way to inform the public of illegal conduct by traders.”
