Court action has been initiated again by the Australian Competition and Consumer Commission over alleged misleading and deceptive advertising and promotion in the health sector.
Proceedings have been instituted in the Federal Court, Melbourne against a Victorian business, Purple Harmony Plates Pty Ltd, for selling products that allegedly claim to protect against the effects of electromagnetic radiation, increase health, reduce pain, stress and fatigue and promote healing.
The products, made of anodised aluminium, also allegedly claim to keep food fresh for longer, produce a more complete burning of automotive fuel resulting in more power and greater economy, reduce fridge odours and running costs, reduce the amount of pool chemicals needed and rejuvenate sick plants.
The ACCC alleges no substantial evidence has been provided to justify these claims.
The second matter that has been filed in the Federal Court, Brisbane involves a business trading as the Australian Institute of Permanent Makeup.
It concerns widespread claims about micro-pigmentation procedures offered in the cosmetic surgery and beauty industries. The procedures claim to be permanent but documentation actually supplied to consumers advises that the product lasts between three and five years before further treatment would be required to maintain the desired effect.
In both cases claims are made about future matters and they must be capable of substantiation. The businesses were requested to provide proof that the claims were genuine but were unable to satisfy the ACCC.
The ACCC is seeking court orders including:
- declarations that the businesses have breached the relevant provisions of the Trade Practices Act
- injunctions preventing the businesses from engaging in similar conduct in the future
- corrective advertising; and
- refunds to consumers who believe they were misled by the advertising.
The ACCC is also seeking corrective advertising on the websites of Purple Harmony Plates Pty Ltd and the Australian Institute of Permanent Makeup.
Directions hearings have been set down for Purple Harmony Plates Pty Ltd and the Australian Institute of Permanent Makeup on 6 and 14 December 2000 respectively.
Both matters follow interim court orders obtained against David Zero Population Growth Hughes trading as Crowded Planet. Crowded Planet offers contraception for sale over the Internet. It is alleged that Crowded Planet was supplying Schedule 4 oral contraceptives. Due to health risks associated with oral contraceptives, it is illegal in Australia to supply or purchase them without a prescription.
The ACCC alleges that Mr Hughes engaged in misleading and deceptive conduct, by silence, in not informing the public that it is illegal to supply or purchase Schedule 4 drugs without a prescription. It is further alleged that Mr Hughes made misrepresentations about the efficacy of various contraceptives. It is alleged he also misled consumers by making representations that the ACCC had approved Crowded Planet's operations. The ACCC does not give approval to the operations of individual businesses.
Crowded Planet was ordered on 9 November to publish corrective advertising on its website.
Proceedings for contempt of court have been lodged by the ACCC because it alleges Mr Hughes has failed to comply with those court orders made by Justice Tamberlin.
The hearing of the ACCC's application regarding the contempt of court is scheduled for Thursday 14 December at 2.15 p.m. before Justice Tamberlin in the Federal Court, Sydney.
A guideline on advertising in the health sector, Fair treatment: Guide to the Trade Practices Act for the advertising or promotion of medical and health services is available from the ACCC, the HCCC and is available on the ACCC website: www.accc.gov.au. It is free of charge.