Advertisements for millionaire property investment seminar 'misleading'
The Federal Court has made orders, by consent, against property investment seminar promoter Giann & Giann Pty Ltd and its director, Mr John Giannopoulos, for misleading and deceptive conduct in the promotion of a Secrets of a Real Estate Millionaire property investment seminar.
Giann & Giann Pty Ltd, trading as Break Free Events, was responsible for advertisements which appeared in a number of Australian newspapers in late 2003, advertising a "Free Event" to be presented by property investor, Mr Peter Flanagan.
The Australian Competition and Consumer Commission instituted proceedings against Giann & Giann and Mr Giannopoulos in September 2004, alleging that in the newspaper advertisements, as well as brochures handed out to attendees of the free seminars advertising a four-day course, the following representations were made:
that attendees of the free seminar would be given a unique formula of property investment strategies that when implemented, were certain to produce profit and wealth through investment in property; and
that attendees of the four-day course who implemented the property investment strategies taught would be likely to become wealthy by investing in property, even if they had no money at the time they commenced to implement the strategies;
when, in fact:
Giann & Giann did not have reasonable grounds for making the representations;
the investment strategies were not unique and did not consist of a formula that when implemented was certain to produce wealth;
those who implemented the property investment strategies were not likely to become wealthy by investing in property, whether or not they had money of their own at the time they commenced to implement the strategies; and
the strategies were not actually taught at the free seminars.
The ACCC alleged that Mr Giannopoulos had aided, abetted, counselled or procured and was knowingly concerned in or a party to Giann & Giann's alleged misleading and deceptive conduct in promoting the seminars and course. The Federal Court has declared, by consent, that the conduct of Giann & Giann and Mr Giannopoulos in relation to the advertisements and brochures was misleading and deceptive or likely to mislead or deceive in contravention of section 52 of the Trade Practices Act 1974.
Further, the Federal Court has ordered the following by consent:
injunctions permanently restraining Giann & Giann and Mr Giannopoulos from publishing the advertisements or any advertisements substantially the same as them; or from making the representations or any representations to substantially the same effect as those made in the advertisements;
a requirement that Mr Giannopoulos undertake a trade practices compliance program within the next 12 months; and
a requirement that Giann & Giann make a contribution toward the ACCC's costs in the proceedings.
"This is a good result of the ACCC's campaign against misleading conduct by wealth-creation promoters", ACCC Chairman, Mr Graeme Samuel, said today.
