Morgan Pacific Pty Ltd, Mr Paul Hanna and Mr Danny Hanna
s. 52. Alleged misleading and deceptive conduct
26 October 2004: The ACCC instituted proceedings against Morgan Pacific Pty Ltd and its directors, Mr Paul Hanna and Mr Danny Hanna, alleging misleading and deceptive conduct in promoting property investment seminars in advertisements called 'YOU! A Property Millionaire'.
The ACCC alleges Morgan Pacific is responsible for the advertisements, which appeared in a number of Australian newspapers and on the internet in late 2003. The advertisements promoted three-hour property investment seminars, presented by self-described 'multi-millionaire property investors and developers', Danny and Paul Hanna.
The seminars, held in a number of capital cities during October and November 2003, cost $65 a ticket.
A directions hearing before Justice Bennett will be held in the Federal Court, Sydney, on 23 November at 9.30 am.
23 November 2004: A directions hearing was held. A further directions hearing will be held before Justice Bennett in the Federal Court, Sydney, on 22 February 2005.
22 February 2005: A directions hearing was held. A further directions hearing is scheduled before Justice Bennett in the Federal Court, Sydney, on 14 June 2005.
14 July 2005: The Federal Court has declared by consent that Morgan Pacific engaged in conduct that was likely to mislead or deceive by making representations in the advertisements that:
the principles and strategies concerning property investment practiced by the Hannas and taught at the seminars advertised in the advertisements (the property investment strategies) were capable of implementation by participants in the seminars to substantially the same effect as they were implemented by the Hannas; whereas in fact the strategies were not likely to be implemented to that effect
people who implemented the property investment strategies would be likely to become wealthy by investing in property and engaging in property development, when Morgan Pacific did not have reasonable grounds for making that representation, and in fact the possibility of becoming wealthy by implementing those strategies was not likely
people who implemented the property investment strategies would be likely to build multi-million dollar property portfolios, when Morgan Pacific did not have reasonable grounds for making that representation; and in fact the possibility of building a multi-million dollar property portfolio by implementing those strategies was not likely
people who implemented the property investment strategies would be likely to acquire property valued at hundreds of thousands of dollars using none of their own money and with zero debt; when Morgan Pacific did not have reasonable grounds for making that representation, and in fact successful implementation of the property investment strategies was in practice not likely and the possibility of persons who implemented them acquiring property valued at hundreds of thousands of dollars without using any of their own money and with zero debt, was not likely.
The Federal Court declared by consent that the Hannas, by participating in the preparation and publication of the advertisements, were directly or indirectly a party to the contraventions of the Act by Morgan Pacific.
The Federal Court also ordered by consent that the Hannas make a contribution toward the ACCC's costs in the proceedings to the amount of $17 600. Further, Morgan Pacific and the Hannas made undertakings to the court that they will not directly or indirectly be in any way involved in publishing these same advertisements or any advertisements substantially similar as them; or make the representations or any representations to substantially the same effect as those made in the advertisements.
