SMS Global Pty Ltd will post a revised ‘click through’ icon on its website which links to a notice about its past false and misleading conduct as part of undertakings provided to the Federal Court.
The Australian Competition and Consumer Commission’s contempt proceedings against SMS Global Pty Ltd have been resolved by way of consent.
“This matter serves as a timely reminder of the importance of complying fully with the court’s orders," ACCC chairman Rod Sims said today.
“The agreed resolution means the ‘click through’ icon will be in place for over five months instead of three months as initially required. SMS Global has also incurred significant legal costs, which could have been avoided if it had been more responsive when first contacted.
"The ACCC accepts that the company has shown genuine contrition and consented to a resolution that remedies the issue."
On 8 September 2011, the ACCC issued proceedings in the Federal Court in Melbourne against SMS Global alleging contempt of court.
The ACCC alleged that SMS Global breached an order made by Justice Murphy requiring the company to publish and maintain for 90 days a corrective notice that would be accessed by clicking on an icon that prominently displayed in red text on a black background the words: “False and Misleading Conduct by SMS Global Pty Ltd – Notice Ordered by the Federal Court of Australia”.
The ACCC alleged that SMS Global had not prominently displayed the required ‘click through’ icon on its website and that a subsequent increase in the size of the ‘click through’ icon by the company had not remedied the concern.
In resolution of the issue, SMS Global has provided an undertaking to the court that it will post an amended, prominent form of the ‘click-through’ icon on its website for a further 60 days, and has agreed to pay the ACCC’s costs in the amount of $30,000. The undertaking has been accepted by the court and an order made for payment of the costs agreed by the parties.
Further, SMS Global has acknowledged that on reflection the form of ‘click-through’ icon published on its website was not sufficiently prominent and accepts it should have been more responsive to the ACCC’s concerns and position when first contacted.
In August the Federal Court made orders and imposed penalties totalling $85,000 against SMS Global and its Director, Carl Krumins for misleading consumers by falsely representing that it was endorsed by the government. The order for the prominent display of the ‘click through’ icon, amongst other orders, arose from this initial proceeding.