The Australian Competition and Consumer Commission has instituted legal proceedings in the Federal Court in Brisbane against Duco Magic (Australia) Pty Ltd and its director, Mr Warwick Lindsay.
Duco Magic currently offers business opportunities to individuals across Australia. This involves the purchase of a technician kit, which includes training DVDs and materials, paints, and ancillary products that can be used to repair damaged paint on motor vehicles, mostly in car yards. The cost of each kit is currently $36,641.00.
The ACCC alleges that Duco Magic and Mr Lindsay misrepresented the income that could be earned by technicians, and overstated the expected demand for the services of a Duco Magic technician.
The ACCC is seeking declarations that Duco Magic and Mr Lindsay contravened section 52 of the Trade Practices Act 1974 which prohibits misleading or deceptive conduct. The ACCC is also seeking injunctions (including on an interlocutory basis) and costs.
This matter has been listed for directions in the Federal Court, Brisbane on 28 March 2008 before Justice Dowsett.