The Full Federal Court today dismissed an appeal by Gold Coast businessman Grant Warren Hudson against his six-month prison sentence.
On 7 May 1999, Hudson was sentenced to six months' jail after he and his company, Goldstar Corporation Pty Ltd, were found guilty of contempt of court. Goldstar was also fined $30,000 and ordered to pay the ACCC's costs. Hudson appealed against his prison sentence, arguing that it was too severe.
In an earlier proceeding, Hudson was given a two-month prison sentence, suspended for two years, and Goldstar was fined $10 000 for breaching an undertaking to the Court that they would not seek payment for unsolicited advertising. *Goldstar and Hudson were also injuncted from engaging in this conduct.
When the ACCC obtained evidence that Goldstar had breached the injunctions by contacting businesses to demand payment for advertising they had never ordered, it took further action against the company to stop the conduct.
In a joint judgment dismissing Hudson's appeal, their Honours found: "the contempts were not merely a failure to act, but a failure to take the Court's orders seriously, or a lack of will to comply with the orders, resulting in a failure to take even basic steps to ensure that the court orders were complied with".
In the circumstances, the Full Court held, it was "impossible to conclude that the sentence of six months is manifestly excessive".
The Acting ACCC Chairman, Mr Allan Asher, said: "The ACCC can only protect consumers if the court orders it obtains are obeyed. Breaches must be pursued. Hudson preyed upon small businesses throughout Australia. The sentence will hopefully deter others not minded to respect the court's authority."
*Seeking payment for unsolicited advertising, commonly known as "blowing" or telefraud, contravenes section 64 of the Trade Practices Act 1974. Complaints about unsolicited advertising are commonly made to the ACCC, and it 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. It is available from ACCC offices in each capital city, Townsville and Tamworth.
On 7 May 1999, Hudson was sentenced to six months' jail after he and his company, Goldstar Corporation Pty Ltd, were found guilty of contempt of court. Goldstar was also fined $30,000 and ordered to pay the ACCC's costs. Hudson appealed against his prison sentence, arguing that it was too severe.
In an earlier proceeding, Hudson was given a two-month prison sentence, suspended for two years, and Goldstar was fined $10 000 for breaching an undertaking to the Court that they would not seek payment for unsolicited advertising. *Goldstar and Hudson were also injuncted from engaging in this conduct.
When the ACCC obtained evidence that Goldstar had breached the injunctions by contacting businesses to demand payment for advertising they had never ordered, it took further action against the company to stop the conduct.
In a joint judgment dismissing Hudson's appeal, their Honours found: "the contempts were not merely a failure to act, but a failure to take the Court's orders seriously, or a lack of will to comply with the orders, resulting in a failure to take even basic steps to ensure that the court orders were complied with".
In the circumstances, the Full Court held, it was "impossible to conclude that the sentence of six months is manifestly excessive".
The Acting ACCC Chairman, Mr Allan Asher, said: "The ACCC can only protect consumers if the court orders it obtains are obeyed. Breaches must be pursued. Hudson preyed upon small businesses throughout Australia. The sentence will hopefully deter others not minded to respect the court's authority."
*Seeking payment for unsolicited advertising, commonly known as "blowing" or telefraud, contravenes section 64 of the Trade Practices Act 1974. Complaints about unsolicited advertising are commonly made to the ACCC, and it 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. It is available from ACCC offices in each capital city, Townsville and Tamworth.