The Federal Court in Melbourne has made orders and declarations by consent against Mr Mina Guirguis, in relation to his contravention of the Trade Practices Act 1974 for failing to comply with the prescribed consumer product information standard for tobacco products.
The Australian Competition and Consumer Commission alleged Mr Guirguis arranged the supply of retail packages of tobacco (eg. cigarettes in packets and cartons) that failed to comply with the Trade Practices (Consumer Product Information Standards) (Tobacco) Regulations 2004.
The tobacco regulations, which are administered by the ACCC, require retail packages of tobacco manufactured in, or imported into, Australia on or after 1 March 2006 to be labelled with prescribed warning, information and explanatory messages and graphic images.
Mr Guirguis arranged for the supply of offending tobacco products on various occasions in 2006 and 2007 via the website www.cheapcigarettes.com.au.
In addition to declaring that Mr Guirguis had contravened the tobacco regulations, the Court granted an injunction restraining Mr Guirguis from supplying or aiding, abetting or being knowingly concerned in the supply of retail packages of tobacco that are not labelled in accordance with the tobacco regulations.
The Federal Court also declared that Mr Guirguis had engaged in misleading and deceptive conduct and made a false and misleading representation in contravention of sections 52 and 53(g) of the Act by representing on the website www.cheapcigarettes.com.au that there were no refunds for tobacco products sold on the website. In fact, under certain circumstances customers would be entitled to a refund. An injunction was also granted restraining Mr Guirguis from making such a representation in the future.
ACCC Chairman, Mr Graeme Samuel, said the warning messages and graphic images on cigarette packets and cartons are an important means by which smokers are informed about the health consequences of their habit.
"Conduct of the kind in the present case undermines important initiatives of health and other relevant authorities to educate and warn consumers about the dangers of smoking and particularly those members of the public making online purchases of tobacco products.
"While the ACCC's current action was a civil proceeding, traders should also be aware that the Act provides for criminal prosecution of certain contraventions of the Act including non-compliance with prescribed consumer product information standards such as the tobacco regulations.
"Traders should also appreciate that under the Act consumers will have the right to a refund in certain circumstances. This is a right that cannot be denied or excluded by the trader," Mr Samuel said.