ACCC obtains refunds of almost $120,000 from Rural Network introduction agency

Thirty-five members of an introduction agency will receive refunds of nearly $120,000 after the Australian Competition and Consumer Commission court has accepted a court-enforceable undertaking from the firm.

The ACCC has also obtained declarations against the agency as well as injunctions from the Federal Court against the agency and its director, Ms Leanne McDonald.

In making his orders, Justice Spender described the agency's conduct as "not only serious but calculated and quite callous."

The court has declared that Rural Network Pty Ltd engaged in misleading or deceptive conduct and misrepresentations in breach of the Trade Practices Act 1974.

Further, Ms McDonald was declared to be knowingly concerned in both Rural Network's conduct and similar conduct engaged in by now deregistered Country Contact Club Pty Ltd.

The court declared the use of fabricated descriptions of women by Rural Network when promoting its introduction services in advertisements in regional newspapers was misleading.

Rural Network induced potential members to join by making misleading and deceptive representations regarding compatibility checks and falsely represented that a "compatible person" had expressed a desire to meet a potential member and would be introduced once membership fees were paid.

The court also declared Ms McDonald was knowingly concerned in the conduct of both companies obtaining further payments from members by staff:

• misrepresenting that a suitable woman had been identified in a higher membership category and would be introduced to the member when they paid an additional sum to be placed in the same higher category
• misrepresenting that a member would be given access to women's profiles in a special section of the website by paying an additional sum
• misrepresenting that a liability had been incurred by a member and withholding further introduction services until that amount was paid, and
• misrepresenting that a discount on the membership fee given to the member when they joined was given in error or without required approval and withholding further introduction services until that amount was paid.

The court imposed injunctions on Rural Network and Ms McDonald, including a seven year restraint on the way in which Rural Network and Ms McDonald advertise and supply introduction services. It also ordered costs of $60,000 be paid to the ACCC.

"This was predatory conduct whereby Rural Network staff would determine a member's assets and income and seek to 'upgrade' his membership in order to
maximise revenues," ACCC Chairman, Mr Graeme Samuel, said. "Importantly, the injunctions also apply to Ms McDonald personally so as to prevent future involvement by her in similar conduct."