ACCC alleges misrepresentations in freight transport industry

The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Brisbane, alleging misleading and deceptive conduct in relation to the provision of a freight transport contract in North Queensland.

The respondents are Multigroup Distribution Services Pty Ltd which at the relevant times was trading as Discount Freight Express and now trades as Star Track Express, its former manager in Townsville, Mr John O’Neile and its Qld State Manager Mr Malcolm Roberts.

The ACCC alleges that from January 1999 to September 1999 the respondents misled Mr Wayne Parker, a director of Parker Freight Express Pty Ltd about the provision of a transport contract that Discount Freight Express would provide Parker Freight Express in the North Queensland transport industry. In particular, the ACCC alleges that Mr Parker was promised the Townsville to Mt Isa transport work when there was no reasonable grounds for making this representation.

By engaging in such conduct the ACCC alleges that Multigroup Distributions Services Pty Ltd acted in breach of section 52 of the Trade Practices Act 1974 and that Mr O’Neile and Mr Roberts were knowingly concerned in that conduct.

The ACCC is seeking court orders including:

• injunctions restraining Multigroup Distributions Services, Mr O’Neile and Mr Roberts from making similar representations in the future

• declarations that Multigroup Distributions Services contravened the Act and that Mr O’Neile and Mr Roberts were knowingly concerned in that contravention

• findings of fact

• damages for Parker Freight Express

• an order requiring Multigroup Distributions Services to implement a trade practices compliance program

• costs

A directions hearing was held today in the Federal Court, Brisbane, at which various programming orders were made.