ACCC institutes civil, criminal proceedings against former Advanced Hair Studio Hobart franchisee

The Australian Competition and Consumer Commission has begun civil and criminal proceedings in the Federal Court in Hobart against Narnia Investments Pty Ltd and its director, Mr Simon Clarke, for alleged false, misleading and deceptive conduct in contravention of the Trade Practices Act 1974. 

Narnia Investments formerly owned the Advanced Hair Studio (AHS) Hobart franchise.

In the civil proceedings, the ACCC alleges that Narnia Investments and Mr Clarke misrepresented a consumer's termination and refund rights under a $15,500 hair replacement contract with AHS Hobart, in contravention of section 52* of the Act.

The ACCC seeks:

• declarations
• injunctions
• a trade practices compliance program, and
• costs.

In the criminal proceedings, the ACCC alleges that Narnia Investments and Mr Clarke knowingly provided false and misleading information to the ACCC in response to a section 155** notice issued by the ACCC to Narnia Investments in 2007 in contravention of section 155(5)*** of the Act.

The hearings for the civil and criminal proceedings have been set down for 9 October 2008 in the Federal Court in Hobart.

Background

* Section 52 of the Act prohibits a company in trade or commerce from engaging in misleading or deceptive conduct or conduct likely to mislead or deceive.

** Section 155 of the Act gives the ACCC broad investigatory powers to obtain information, documents and evidence in relation to possible contraventions of the Act.

***Section 155(5) of the Act makes it an offence for a person to knowingly furnish information or evidence that is false or misleading in purported compliance with a section 155 notice.  Each offence under section 155 carries a fine of up to $2,200 or up to 12 months imprisonment.