ss. 51AD and 52. Misleading and deceptive conduct; making various representations without reasonable grounds
4 August 2004: The ACCC instituted legal proceedings against Mr Bon Levi, who it alleges has sold various distributorships under the Little Joe and Joey's brands.
The ACCC alleges misleading and deceptive conduct and contraventions of the Franchising Code of Conduct in relation to the promotion and sale of the distributorships including those for snack foods, cookies and fruit juices as well as master distributorships for cookies and beverages.
The ACCC alleges that the distributorships in question are in fact franchises and that Mr Levi breached s. 51AD of the Act by failing to provide distributors and prospective distributors with disclosure documents, and copies of the Franchising Code of Conduct, as the code requires.
The ACCC also alleges that Mr Levi contravened s. 52 of the Act by representing other matters without reasonable grounds.
The ACCC has also instituted proceedings against Mr Craig Cleary, Little Joe Snax's former national distribution sales manager, alleging that he was an accessory to each of the alleged contraventions of Mr Levi that occurred in or after October 2003.
The matter has been listed for a directions hearing in the Federal Court, Brisbane, on 1 September 2004.
1 September 2004: A directions hearing was held. The ACCC is waiting for correct filing of defence by both Mr Bon Levi and Mr Craig Cleary and is in the process of writing to the court advising of delays by the respondents.
January 2005: Mediation started and continues with each respondent. Further directions hearing will be scheduled by the court when mediation has been completed.
February 2005: Consent Orders granted by Justice Kiefel on 28 February 2005. Orders include declarations and injunctions against both respondents. Mr Levi and Mr Cleary ordered to pay $40 000 and $5000, respectively in costs.
27September 2006: The Federal Court made an order of bankruptcy against Mr Bon Levi after the ACCC filed a creditor's petition against Mr Levi following his failure to pay $38,000 in costs to the ACCC pursuant to an order of the Federal Court of Australia. The costs order was made by consent on 28 February 2005 by Justice Kiefel in respect of proceedings brought by the ACCC against Mr Levi for breaches of the Trade Practices Act 1974. Mr Levi is now required to comply with his obligations under the Bankruptcy Act 1959.
