The Federal Court has fined Info4pc.com Pty Ltd and Director, Mr James Rae, a total of $14 000 for contempt of court orders made by the Court in early 2001. Info4pc.com and Mr Rae were also ordered to pay indemnity costs to the Australian Competition and Consumer Commission.
The contempt proceedings arose out of ACCC court action against Info4pc.com and Mr Rae for alleged misleading and deceptive conduct, bait advertising and accepting payment without intending to supply in contravention of the Trade Practices Act 1974 in relation to the sale of computers.
The ACCC brought contempt proceedings against Info4pc.com on 31 January 2001 alleging the company breached a court order restraining it from advertising computers and upgrades for computers from 25 January 2001. On 30 January 2001 Info4pc.com's website contained an advertisement soliciting orders for computers and upgrades for computers. The company was fined $2000 for this contempt.
The ACCC also brought contempt proceedings against Info4pc.com and Mr Rae on 7 May 2001 alleging they had breached court orders restraining Info4pc.com from making cash withdrawals or cheques payable to cash from any account and from making any payments to its directors.
In breach of those orders, Mr Rae wrote wage cheques for higher amounts than the employee's actual wages. Mr Rae received the excess amount in cash from the employees. Approximately $14 000 was involved under this arrangement. The company was fined $8000 and Mr Rae $4000 for this contempt.
"The ACCC views breaches of Court orders very seriously. Info4pc.com and Mr Rae ignored Court orders, leaving the ACCC no choice but to institute contempt proceedings", ACCC Chairman, Professor Allan Fels, said today.
"The judgment demonstrates that the ACCC is serious about its legal actions. It relies on parties to obey court orders and when they do not it will vigorously pursue the matter. This decision again sends a very strong message to the community that the courts will not tolerate their orders being ignored".
Media inquiries
Ms Lin Enright, Media, (02) 6243 1108or 0414 613 520
Additional contacts
Mr Sam Di Scerni, Regional Director, WA , (08) 9325 3622
Release # MR 184/02
Issued: 1st August 2002
Background
On 23 January 2001 the ACCC instituted proceedings in the Federal Court, Adelaide, which were transferred to the Federal Court, Perth on 24 January 2001. The ACCC alleged that Info4pc.com Pty Ltd and Mr James Rae engaged in misleading and deceptive conduct (section 52), bait advertising (section 56) and accepting payment without intending to supply (section 58) in contravention of the Trade Practices Act 1974.
The ACCC alleged that Info4pc.com Pty Ltd advertised computers for $299 and later $499, provided consumers completed a 'lifestyle survey' once a month for two years. The computers for sale were valued between $1250 to $1500. Info4pc.com Pty Ltd claimed that selling 'marketing data' generated from the surveys would pay for the computers, however, the ACCC alleged that Info4pc.com Pty Ltd had not identified a market for such data and was unable to supply any computers to consumers.
The court orders restrain the company from, among other things, advertising and accepting orders for computers and/or upgrades and freezes the company's business bank account. The matter is continuing in the Federal Court.
The matter has been listed for Directions on 9 August 2002.
