ACCC stops false professional credentials claim by accounting firm

The Federal Court of Australia on Wednesday made orders by consent granting declarations and injunctions against an accounting firm for its representation that it was a firm of chartered accountants when this was not the case. The declaration also covered misrepresentations concerning the application of Goods and Services Tax to residential rent.

The ACCC took legal action against Rod Turner Consulting Pty Limited and Mr Rod Turner, its sole director, in July 2000. The firm representing itself as chartered accountants had written a letter signed by Mr Turner to a tenant that made false statements about the effect of the introduction of the then New Tax System. The letter claimed that because of the NTS from 1 July 2000 an extra 10 per cent would be payable on residential rent charged by a landlord and that from 20 June 2000 the landlord was including a Goods and Services Tax component in the increased rent. The letter also claimed that water rates for the rented premises would carry a GST cost to the landlord.

The court found that Rod Turner Consulting Pty Limited had breached section 52(1) of the Trade Practices Act 1974 because of its chartered accountants misrepresentation. The court also found the firm to be in breach of section 52(1) of the Act for the misrepresentations it had made about the effect of the GST on residential rents and water rates. The court found that Mr Turner had been knowingly concerned in these breaches.

The court restrained Rod Turner Consulting Pty Limited from representing that it was a firm of chartered accountants and also Mr Turner from representing that he was a chartered accountant.

The court also ordered Mr Turner to attend a trade practices seminar at his own expense, and for the firm and Mr Turner to pay a contribution towards the ACCC's costs in this matter.

Rod Turner Consulting Pty Limited admitted early that its conduct of misrepresenting its professional qualifications and status was misleading and deceptive under the Trade Practices Act.

"The ACCC will vigorously pursue conduct that misleads consumers and businesses about their professional credentials and qualifications", ACCC Chairman, Professor Allan Fels, said today.