The Australian Competition and Consumer Commission has instituted legal proceedings against Rural Network Pty Ltd and Ms Leanne McDonald, director of Rural Network, over her involvement in alleged misleading or deceptive conduct in breach of section 52 of the Trade Practices Act 1974 in relation to the provision of introduction services.
The ACCC also alleges that a previous company, Country Contact Club Pty Ltd, engaged in similar conduct.
The ACCC has alleged that newspaper advertisements of Rural Network and Country Contact Club promoted their introduction services using descriptions of women that were fabricated. The ACCC further alleges that both companies induced potential members to join by making misleading and deceptive representations in relation to conducting compatibility checks and by falsely representing that a "compatible person" had expressed a desire to meet a potential member and would be introduced once membership fees had been paid.
The ACCC alleges that both companies obtained further payments from members by:
- representing that a woman in a higher membership category had been identified for a member, and that the member would be introduced to that person when they paid an additional sum to be placed in the same higher category, when no such woman had been identified
- representing that a member would be given access to other members profiles in a special section of the website by paying an additional sum when in fact there was no such section of the website
- representing that a liability had been incurred by a member and that further introduction services could not be provided until that amount was paid when this was not the case, and
- representing that a discount on the membership fee given to the member when they joined was given in error or without required approval and that further introduction services could not be provided until that amount was paid.
The ACCC also alleges that both companies accepted payments from members and potential members for services that they did not intend to supply in contravention of section 58 of the Trade Practices Act.
Further, the ACCC alleges that Ms McDonald was knowingly concerned in, and aided, abetted and procured the contraventions of the Trade Practices Act by both Rural Network and Country Contact Club.
In taking the action, the ACCC is seeking:
- declarations that the conduct of Rural Network and Ms McDonald breached sections 52 and 58 of the Trade Practices Act
- orders restraining Rural Network and Ms McDonald from engaging in such conduct in the future
- a requirement that Rural Network and Ms McDonald inform each member and former member of their conduct, and
- costs
The matter has been listed for a directions hearing before Justice Spender in the Federal Court, Brisbane, on 26 May 2005.