ss. 48, 51AC, 51AD, 52, 53, 59(2). Alleged resale price maintenance, unconscionable conduct, franchising code of conduct, misleading or deceptive conduct, and false representations
26 November 2001: Proceedings were instituted in the Federal Court, Brisbane, against Chaste Corporation and others, including Mr Peter Foster, for allegedly engaging in unconscionable conduct, breach of an industry code and false and misleading representations about the sale of area manager distributorships, the profitability of the distributorships and the efficiency of a weight loss product TRIMit. It is alleged the respondents acted with complete disregard of area managers' reasonable commercial expectations or the long-term viability of Chaste.
September 2004: A case review conference in the matter will be held on 19 October 2004 so that appropriate directions can be made to prepare the matter for a final hearing.
October 2004: A further case review conference is scheduled for 8 December 2004. Respondents have until 12 November to submit affidavits.
8 December 2004: A further directions hearing is scheduled for 1 February 2005.
1 February 2005: Case conference held. Date for hearing to be referred to the judge.
June 2005: The matter was heard before Justice Lander on 14–17 June 2005. Judgment has been reserved.
2 September 2005: Judgment was handed down on 2 September 2005. Record penalties for resale price maintenance were imposed on the respondents.
Peter Foster received a penalty of $150 000
Braddon Webb received a penalty of $150 000
Sean Cousins received a penalty of $100 000
Kevin McMullan received a penalty of $30 000
Professor Stephen D’Alton was ordered to refrain from misleading and deceptive conduct in response to representations he made about research about TRIMit.
Orders were also made against the respondents for costs.
The court also imposedwide ranging injunctions against Mr Foster in regard to any future involvement in the weight loss, cosmetic or health industry products.
Mr Foster is appealing one of these injunctions.
Mr Foster is appealing one of these injunctions and a hearing has been listed in the Full Federal Court for 22 February 2006.
28 February 2006: Mr Foster has appealed one of these injunctions and a hearing was held in the Full Federal Court on 22 February 2006. The court’s decision was reserved.
10 March 2006: The Full Federal Court, Brisbane, dismissed an appeal by Mr Peter Foster against an order restraining his involvement in any business relating to weight loss, cosmetic or health industry products or services for five years.
Justice Lander then made an order restraining Mr Foster from being directly or indirectly involved in the promotion or conduct by a corporation of any business relating to weight loss, cosmetic or health industry products or services of any kind for five years.
