ACCC institutes legal action against SMS Global and Carl Krumins

23 December 2010

The Australian Competition and Consumer Commission has instituted legal proceedings in the Federal Court, Melbourne against SMS Global Pty Ltd, Mr Carl Krumins as knowingly concerned and separately Mr Krumins (trading as K.A.S Hosting).

SMS Global provides SMS and MMS messaging services and K.A.S Hosting provides domain name registrations, web hosting, web design, email hosting, server hosting and other related services.

The ACCC alleges that SMS Global misrepresented on its website (www.smsglobal.com/en-au) that:

  • SMS Global was endorsed by the Australian Government as an Australian Government supplier under the Endorsed Supplier Arrangement (ESA)
  • SMS Global was a current AIMIA member, and
  • SMS Global had relevant industry experience of 6 to 10 years.

The ACCC further alleges that Mr Krumins (trading as K.A.S Hosting) misrepresented on the website (www.kas.net.au) that K.A.S Hosting was endorsed by the Australian Government as an Australian Government supplier under the ESA.

SMS Global and Mr Krumins are alleged to have engaged in false and misleading conduct and contravened sections 52 and 53(d) of the Trade Practices Act 1974. Mr Krumins is alleged to have been directly or indirectly knowingly concerned in the contraventions by SMS Global.

The ACCC is seeking:

  • declarations that SMS Global and Mr Krumins contravened the Trade Practices Act 1974
  • an injunction to restrain SMS Global and Mr Krumins from engaging in false and misleading conduct in the future
  • a court order that SMS Global and Mr Krumins publish corrective notices on its websites regarding the conduct
  • the implementation of a trade practices compliance and training program
  • penalties, and
  • ACCC costs.

The matter has been filed in the Federal Court's Fast Track List and is listed for a scheduling conference in Melbourne on 3 March 2011 at 9.30 a.m.

Release number: 
NR 285/10
ACCC Infocentre: 

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