Crowded Planet founder gaoled for contempt

The Federal Court today committed Mr David Hughes, trading as Crowded Planet, to gaol for a period of two weeks for contempt of court.

Justice Tamberlin had on 2 March found Mr Hughes guilty of contempt. Justice Tamberlin at that date issued a warrant for Mr Hughes' arrest and committal however allowed Mr Hughes a thirty day grace period to comply with the orders. Mr Hughes was taken from the Court to serve his goal sentence.

The Australian Competition and Consumer Commission instituted contempt of court proceedings against Mr Hughes on 22 November 2000. The ACCC alleged that Mr Hughes was guilty of contempt of court by failing to comply with orders made by the Federal Court on 9 November 2000. On that date the court made interim orders that:

1. Mr Hughes be restrained from supplying oral contraceptives to consumers within Australia.

2. Mr Hughes publish on his website a notice stating that Crowded Planet cannot and will not supply oral contraceptives to consumers within Australia.

The Court gave Mr Hughes an opportunity to demonstrate compliance with its orders. Mr Hughes could not show compliance to the Courts satisfaction.

The ACCC's action against Crowded Planet concerns the supply of Schedule 4 oral contraceptives over the internet. Due to the health risks associated with oral contraceptives, it is illegal, in Australia, to supply schedule 4 drugs without a prescription.

ACCC Chairman Professor Allan Fels said "Todays action reflected the ACCC commitment to its legal actions. It relies on parties to obey court orders, and when they do not, it will vigorously pursue the matter. This is particularly so in the present case which raises significant questions of public health. This decision again sends a very strong message to the community that the courts will not tolerate their orders being ignored."

Professor Fels said "Consumers must be made aware of the health risks involved in taking any pharmaceutical obtained over the internet."

"Consumer protection in the health sector is a high priority for the ACCC".