A Gold Coast businessman was today given a two month prison sentence, suspended for two years, by the Federal Court in Brisbane for breaches of undertakings he had given to the Court in July.
The Australian Competition and Consumer Commission had sought orders preventing Grant Warren Hudson and his company, Goldstar Corporation Pty Ltd, from seeking payment for unsolicited advertising* in three publications, the National Federal State and Local Government Advertiser, the Municipal Trades and Services Directory and the Child Abuse Review.
It was alleged that Hudson and his company had engaged in misleading or deceptive conduct by falsely representing that the companies approached had previously ordered advertising from Goldstar, when this was not the case. In response, Hudson gave a written undertaking to the Court that he would not engage in the conduct alleged by the ACCC.
In September, however, the ACCC took action when it obtained evidence suggesting that Hudson and Goldstar were continuing to demand payment for advertisements from companies which had never heard of his company or its publications.
In sentencing, Mr Justice Drummond said it was a ‘wilful, deliberate and serious contempt’. Justice Drummond also ordered Goldstar to pay a fine of $10 000, as well as the ACCC legal costs.
ACCC Chairman, Professor Allan Fels said, ‘This case serves as a reminder, if any were needed, that the Court takes very seriously any undertakings that are given to it. Similarly, where the Commission has brought action to prevent conduct which it believes to be in breach of the Trade Practices Act, and the Court accepts undertakings in lieu of making orders, we will be vigilant in ensuring that those undertakings are adhered to’.
* Seeking payment for unsolicited advertising, commonly known as ‘blowing’ or telefraud, contravenes section 64 of the Trade Practices Act. Complaints about unsolicited advertising are commonly made to the ACCC, and the Commission has taken legal action against a number of similar schemes. The ACCC has produced a free brochure, 'Scams', to alert businesses to these unlawful practices.
* Seeking payment for unsolicited advertising, commonly known as ‘blowing’ or telefraud, contravenes section 64 of the Trade Practices Act. Complaints about unsolicited advertising are commonly made to the ACCC, and the Commission has taken legal action against a number of similar schemes. The ACCC has produced a free brochure, 'Scams', to alert businesses to these unlawful practices.