The Federal Court today made interlocutory orders against David Zero Population Growth Hughes, trading as Crowded Planet, restraining him from supplying oral contraceptives to consumers within Australia.
The Australian Competition and Consumer Commission instituted proceedings against Mr Hughes on 30 August 2000 alleging that Mr Hughes had engaged in misleading or deceptive conduct in breach of sections 52, 53(c), and 53(d) of the Trade Practices Act in that he had represented on his Internet site, that the ACCC had approved Crowded Planet's operations. The ACCC does not give approval to the operations of individual business.
Subsequent to this, the ACCC became aware that Crowded Planet was supplying Schedule 4 oral contraceptives over the Internet. Due to the health risks associated with oral contraceptives, it is illegal, in Australia, to supply them without a prescription.
"Consumers must be made away of the health risks involved in taking any pharmaceutical obtained over the Internet", ACCC Chairman, Professor Allan Fels, said today.
The ACCC sought the following orders from the Court:
- declarations that Mr Hughes had engaged in conduct in breach of sections 52, 53(c) and 53(d) of the Trade Practices Act 1974; and
- that Mr Hughes publish a correction notice on his website stating that the statement that the ACCC had approved Crowded Planet's operations was false and a gross misrepresentation of the ACCC's attitude to Crowded Planet's operations; and
- Mr Hughes be restrained from supplying oral contraceptives;
- The Federal Court after consideration of the public health issues made the following orders:
- a final order that Mr Hughes publish a correction notice on his website regarding his representation that the ACCC approved Crowded Planet's operations;
- an interlocutory order that Mr Hughes not supply oral contraceptives to consumers within Australia; and
- an interlocutory order that Mr Hughes publish on his website a notice stating that Crowded Planet cannot and will not supply oral contraceptives to consumers within Australia.
The matter is set down for a further directions hearing on 8 February 2001.
"Businesses trading on line must do so within the law", Professor Fels said.