s. 65AAC. Alleged participation in a pyramid scheme
15 November 2004: The ACCC instituted proceedings against Australian Communications Network Pty Ltd, a seller of telecommunications services, for alleged breaches of the pyramid selling scheme provisions of the Trade Practices Act.
It also instituted proceedings against ACN's managing director, Mr Martin Paech, an ACN director; two ACN representatives Mr Keith Janke and Gibbschade Pty Ltd, and Gibbschade's directors Mr Jonathan Gibbs and Ms Christine Schade.
23 November 2004: The ACCC applied for an interim injunction which would prevent ACN from accepting payments from participants until the hearing and determination of the matter.
As a result of the ACCC application, ACN gave undertakings to the court, including that all participation payments ACN receives from new independent representatives from midnight 23 November 2004 until further order of the Federal Court shall be held in trust.
The application for interim injunction was heard before Justice Brad Selway. A trial is scheduled in the week beginning 21 February 2005.
25 February 2005: Hearing completed. Justice Selway reserved his decision.
23 March 2005: Justice Selway found that the scheme is a pyramid selling scheme in breach of s. 65AAC. The matter is adjourned to a date to be fixed for submissions before any orders will be made.
22 April 2005: Timetable set down by Justice Mansfield and hearing for submissions on orders scheduled for 6 May 2005.
6 May 2005: Justice Mansfield has reserved his decision.
20 July 2005: Justice Mansfield made a number of orders, including declarations and injunctions, and orders relating to corrective action.
25 July 2005: ACN and Mr Paech appeal Justice Selway's decision and Justice Mansfield's orders to the Full Court.
12 August 2005: ACCC filed a notice of contention in relation to the Full Court appeal filed by ACN.
12 October 2005: Hearing of the appeal complete. The Full Court has reserved its decision.
25 October 2005: The Full Court handed down its judgment upholding the appeal by ACN and Mr Paech.
21 November 2005: ACCC files application seeking special leave to appeal the Full Court's decision to the High Court.
2 June 2006: The High Court dismissed the ACCC’s application for special leave to appeal the Full Federal Court decision in relation to the marketing system operated by Australian Communications Network Pty Ltd. The application was dismissed with costs.
