s. 65AAC. Alleged pyramid selling in relation to an online gambling scheme
1 December 2003: By ex parte application, the ACCC instituted proceedings against Worldplay Services Pty Ltd (WPS) and its director, Mr Greg Kennedy in the Federal Court, Brisbane. The ACCC alleged that the internet gaming scheme at www.worldgamesinc.com was a pyramid selling scheme and that the services offered to the scheme by WPS constituted participation in a pyramid scheme. The ACCC also alleged that Mr Kennedy is knowingly concerned in this conduct.
7–9 June 2004: The trial was heard before Justice Finn and the court reserved its judgment.
2 September 2004: Justice Finn found that Worldplay Services breached the Trade Practices Act by participating in a pyramid selling scheme. Its director, Mr Greg Kennedy, was found to be knowingly concerned in the contravention.
Justice Finn made orders restraining Worldplay Services from taking part in the World Games scheme or other similar schemes and restraining Mr Kennedy from being knowingly concerned in the participation of Worldplay Services in the World Games scheme or other similar schemes. The respondents were ordered to pay the ACCC's costs.
10 September 2004: Worldplay Services and Mr Kennedy appealed the decision of Justice Finn. The appeal hearing is to be heard on 25 February 2005.
25 February 2005: Judgment reserved.
6 May 2005: In their unanimous decision Justices Ryan, Tamberlin and Kiefel of the Full Federal Court dismissed the appeal by Worldplay Services Pty Ltd and company director, Mr Greg Kennedy, and ordered them to pay the ACCC's costs of the appeal. The decision upheld Justice Finn's finding that Gold Coast company Worldplay Services breached s. 65AAC of the Act and that Mr Kennedy was knowingly concerned, and party to the contravention.
