ACCC alleges unconscionable conduct in promotion and supply of men's sexual dysfunction treatment program

23 December 2010

On Tuesday 21 December 2010 the Australian Competition and Consumer Commission instituted proceedings in the Federal Court, Melbourne, against Advanced Medical Institute Pty Ltd and AMI Australia Holdings Pty Ltd (AMI), Mr Jacov (Jack) Vaisman and two doctors. 

AMI’s legal representatives were informed early Wednesday afternoon of the proceedings and all respondents, except one of the doctors, were served with the court documents on Wednesday afternoon.

The ACCC alleges that from 2008 to 2010, in promoting and supplying medical services and medications for men suffering from erectile dysfunction and premature ejaculation AMI engaged in unconscionable conduct in contravention of section 51AB* of the Trade Practices Act 1974.

The ACCC alleges that, among other things:

  • doctors engaged by AMI conducted consultations with patients in a manner which did not provide an appropriate diagnosis and medical treatment of male sexual dysfunction, and
  • AMI's sales representatives represented to patients they would be entitled to a refund if the AMI treatments were ineffective in circumstances where the sales representatives did not accurately or clearly disclose the conditions on which the refund was offered.

The ACCC alleges that Mr Vaisman and the two doctors were knowingly concerned, a party to or otherwise aided, abetted, counselled or procured the contraventions by AMI.

The ACCC is seeking declarations and injunctions against each of the respondents together with a disqualification order against Mr Vaisman, disclosure orders against AMI, costs and other orders.

The matter is listed for a directions hearing at 10.15 a.m. on 31 January 2011 before Justice North.

*Section 51AB prohibits a corporation from in trade or commerce, in connection with the supply or possible supply of goods or services to a person, engaging in conduct that is in all the circumstances, unconscionable.

Release number: 
NR 289/10
ACCC Infocentre: 

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