Federal Court dismisses unconscionable conduct case

The Federal Court today handed down judgment in the matter of ACCC v Lux Distributors Pty Ltd. These proceedings dealt with allegations by the Australian Competition and Consumer Commission that between 2009 and 2011, Lux engaged in unconscionable conduct in relation to the sale of vacuum cleaners to five elderly consumers in contravention of section 51AB of the Trade Practices Act 1974 and section 21 of the Australian Consumer Law.

The ACCC had alleged that a Lux sales representative called upon five elderly women in their homes under the premise of a free vacuum cleaner maintenance check, and that each of the women was then subjected to unfair and pressuring sales tactics to induce them into purchasing a vacuum cleaner for a price of up to $2280.

Justice Jessup dismissed the ACCC’s Application, finding that, in the circumstances before him, he did not consider that Lux had engaged in unconscionable conduct during their dealings with these consumers.

“The ACCC will carefully consider the judgment,” ACCC Chairman Rod Sims said.

“Unconscionable conduct continues to be an area of priority for the ACCC and it will continue to take enforcement action where appropriate, with a particular focus on conduct involving vulnerable consumers,” Mr Sims said.

On 10 May 2012, the Australian Competition and Consumer Commission filed proceedings in the Federal Court against Lux Distributors Pty Ltd, alleging unconscionable conduct in relation to the sale of vacuum cleaners.

Lux is the sole distributor in Australia of Lux domestic vacuum cleaners and primarily markets these products through in-house demonstrations across Australia.