The Federal Court has fined Info4pc.com Pty Ltd and Director, Mr James Rae, a total of $14 000 for contempt of court orders made by the Court in early 2001. Info4pc.com and Mr Rae were also ordered to pay indemnity costs to the Australian Competition and Consumer Commission.
The contempt proceedings arose out of ACCC court action against Info4pc.com and Mr Rae for alleged misleading and deceptive conduct, bait advertising and accepting payment without intending to supply in contravention of the Trade Practices Act 1974 in relation to the sale of computers.
The ACCC brought contempt proceedings against Info4pc.com on 31 January 2001 alleging the company breached a court order restraining it from advertising computers and upgrades for computers from 25 January 2001. On 30 January 2001 Info4pc.com's website contained an advertisement soliciting orders for computers and upgrades for computers. The company was fined $2000 for this contempt.
The ACCC also brought contempt proceedings against Info4pc.com and Mr Rae on 7 May 2001 alleging they had breached court orders restraining Info4pc.com from making cash withdrawals or cheques payable to cash from any account and from making any payments to its directors.
In breach of those orders, Mr Rae wrote wage cheques for higher amounts than the employee's actual wages. Mr Rae received the excess amount in cash from the employees. Approximately $14 000 was involved under this arrangement. The company was fined $8000 and Mr Rae $4000 for this contempt.
"The ACCC views breaches of Court orders very seriously. Info4pc.com and Mr Rae ignored Court orders, leaving the ACCC no choice but to institute contempt proceedings", ACCC Chairman, Professor Allan Fels, said today.
"The judgment demonstrates that the ACCC is serious about its legal actions. It relies on parties to obey court orders and when they do not it will vigorously pursue the matter. This decision again sends a very strong message to the community that the courts will not tolerate their orders being ignored".