The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Sydney against a Spanish-based directory listing company, European City Guide S L, trading as Industry and Commerce.
The ACCC has alleged that between 2006 and 2009, Industry and Commerce engaged in misleading or deceptive conduct and made false or misleading representations, in breach of sections 52 and 53 of the Trade Practices Act 1974.
Industry and Commerce publishes an online business directory through the website australian-industry-commerce.com. Since 2006, Industry and Commerce has written to Australian businesses advising that the Register of Business Information was being updated and asked businesses to check and update their details to ensure that the business was "positively and correctly presented".
The ACCC has alleged that the forms by which Industry and Commerce solicits listings for its online business directory contain representations which are misleading or deceptive, or likely to mislead or deceive recipients into believing that:
- the forms contained information concerning the business which had already been published on a register
- the forms were concerned with ensuring that details of businesses had been accurately recorded on the register, and
- that businesses would not incur a cost if they confirmed the accuracy of the details recorded on the register, when in fact businesses who returned the form were required to make a payment of $1,600 per year for a minimum of three years.
The ACCC further alleges Industry and Commerce made misleading or deceptive representations on its website about the accuracy, speed and efficiency of its directory service.
The ACCC is seeking court orders including declarations that Industry and Commerce breached sections 52 and 53 of the Act and injunctions restraining Industry and Commerce from seeking to obtain payment from Australian businesses for its directory service and from engaging in similar conduct in the future.
The first directions hearing was before Justice Moore on 24 September 2009, this matter is listed to return to court on 9 February 2010.