The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Brisbane alleging false and misleading or deceptive conduct in relation to the promotion, sale and distribution of commercial orange juice machines in Queensland.
The respondents are: Michigan Group Pty Ltd, Imobiliare (trading as the Queensland Juice Company), Yeppoon Pty Ltd, Rodney Laski, Peter Semos, Linda Moretto, Charles Cameron, Daryl Doherty and George Semos and a lawyer, Prospero Franzese.
The ACCC alleges that from about early 1998, the respondents promoted a scheme where investors would buy a business of one or more commercial orange juicing machines from Michigan Group Pty Ltd, Imobiliare Pty Ltd and/or Yeppoon Pty Ltd. The ACCC alleges that the promoters represented that the machines would be installed in nominated major supermarket chains and retail fruit outlets that were already arranged by Michigan Group and/or Queensland Juice Company. All investors needed to do was buy labelled plastic bottles from Michigan Group Pty Ltd and/or Imobiliare Pty Ltd and then on-sell the labelled bottles to the retail fruit outlets thereby making profits. The ACCC alleges that the promoters promised that business would take very little time to operate, the machines were 'state of the art', would be installed in nominated stores very quickly and would make significant profits.
The ACCC alleges that:
- Michigan Group Pty Ltd and Imobiliare Pty Ltd had not formed any alliance with any major supermarket chain nor any large fruit and vegetable stores in Australia;
- attending to the business required many hours of work from investors;
- the machines did not produce any significant income for the investors;
- the income that investors were able to earn was substantially less than the figures represented; and
- the juice machines were not 'state of the art', but had serious defects.
The ACCC is seeking court orders including:
- findings of fact;
- a declaration that the parties have breached the relevant provisions of the Act;
- injunctions retraining the parties from engaging in similar conduct in the future;
- orders that the parties publish advertisements advising of the conduct;
- orders that the parties implement a trade practices compliance program; and
- costs.
A directions hearing for the matter is listed for 9 March 2001 in the Federal Court, Brisbane.