Introduction Agency, Director breached undertakings: Court orders payment of refunds of $118,476

The Federal Court today found Rural Network and its director, Ms Leanne Nolo* have breached court enforceable undertakings given to the Australian Competition and Consumer Commission in March.

Justice Spender today declared, by consent, that:

• Rural Network had failed to pay refunds to former members totalling $118,476
• Ms Nolo, as guarantor of the sum for refunds, had failed to make such payments
• Ms Nolo had not attended trade practices law training, and
• Rural Network had failed to establish a complaints handling system.

He ordered the respondents pay the amount of $118,476 to the ACCC within seven days for forwarding, by the ACCC, to certain former members of Rural Network previously agreed between the ACCC and the respondents as being entitled to refunds.

ACCC Chairman, Mr Graeme Samuel, said: "It is important businesses and directors recognise court enforceable undertakings impose serious obligations which, if undertaken, must be complied with. The ACCC will not hesitate to enforce such undertakings.

"The ACCC accepted undertakings from Ms Nolo and Rural Network as part of a settlement of previous court proceedings. The refunds are an important element of ensuring Rural Network and Ms Nolo accept responsibility for their conduct and provide significant redress to those subjected to that conduct.''

Ms Nolo was also ordered to write to all new members of Rural Network or any other corporation offering introductory services of which she is a director or involved in the management of, for the next 12 months advising such new members of the court's previous findings regarding misleading and deceptive conduct by Rural Network and Ms Nolo and the ACCC's court action concerning breaches of the undertakings.

"In pursuing compliance with the undertakings the ACCC became aware Ms Nolo was offering introduction agency services under a new business name.  Although the ACCC has not received any complaints regarding this new agency, the ACCC felt it was important new customers of this and any other introduction services Ms Nolo becomes involved in the next 12 months should be aware of Rural Network's previous conduct and Ms Nolo's involvement."

Mr Samuel cautioned consumers to: "make very careful inquiries and be clear on the services they expect and are entitled to before signing up and parting with money.

"Importantly, consumers should think twice before parting with additional money if they have any concerns they have not already received services they believe they are entitled to."

Other orders made by the court include compliance with other terms of the undertaking including trade practices law training, the establishment of a complaints handling system and payment of the ACCC's court costs of $10,000.

In the previous proceedings the court declared that the Rural Network introduction agency had engaged in misleading and deceptive conduct, and had accepted payment with no intention to supply specified services, and that Ms Nolo was knowingly concerned in these contraventions.

*also known as Leanne or Lana McDonald and Leanne or Lana Viney