Final orders concerning misleading and deceptive conduct about the sale of orange juice machines by Michigan Group Pty Ltd, Imobiliare Pty Ltd, Yeppoon Pty Ltd, Mr Rodney Laski and Mr Peter Semos, have been made this week by Justice Dowsett of the Federal Court, Brisbane.
Following Australian Competition and Consumer Commission-initiated court action, Justice Dowsett has found that the parties had engaged in misleading and deceptive conduct in breach of the Trade Practices Act 1974, about the promotion and sale of commercial orange juicing machines in Queensland and New South Wales.
In December 2000, the ACCC instituted proceedings alleging Michigan Group Pty Ltd, Imobiliare Pty Ltd, Yeppoon Pty Ltd, Mr Laski and Mr Semos invited investors to purchase a business comprising one or more commercial orange juicing machines. The ACCC alleged that investors were misled by a number of representations, including that certain agreements had been secured with some major supermarket chains to site the machines. It was further alleged that investors were misled as to the hours of work required from investors, levels of profit that could be made, and the numbers of bottles of juice that could be sold.
In his judgment, Justice Dowsett held that a number of representations made were false or lacked any reasonable basis, and found that Michigan Group Pty Ltd, Imobiliare Pty Ltd and Yeppoon Pty Ltd in breach of the Act. Further, in relation to certain representations, Justice Dowsett held Mr Laski and Mr Semos were knowingly concerned in the misleading or deceptive conduct of Michigan Group Pty Ltd and Imobiliare Pty Ltd respectively.
Justice Dowsett previously granted injunctions against Mr Laski and Mr Semos restraining them from making specific future representations about orange juicing, or other dispensing machines, without first having knowledge of a reasonable basis for making such a representation.
In handing down his final orders, Justice Dowsett made specific declarations that Mr Laski and Mr Semos were knowingly concerned in and/or a party to contraventions of section 52 of the Act by Michigan Group Pty Ltd and Imobiliare Pty Ltd.
"The ACCC welcomes this decision and the orders which provide a clear warning to businesses that any representations made regarding a business opportunity or investment should have a clear basis for reliance by investors", ACCC Chairman, Professor Allan Fels, said today.