Mr Henry Kaye has discontinued his Full Federal Court appeal against last year's Federal Court decision that Mr Kaye and his company, National Investment Institute Pty Ltd (NII), now in administration, breached the Trade Practices Act 1974 by engaging in misleading conduct in the promotion of a "millionaires" property investment course.

The ACCC instituted the proceedings against Mr Kaye and NII in September 2003. In October 2004, Justice Susan Kenny found that in advertisements promoting a "millionaires" property investment course on radio and on the Internet, Mr Kaye and NII had engaged in misleading and deceptive conduct by claiming that Mr Kaye could turn ordinary Australians into millionaires with no money down, no equity, no debt and a price protection guarantee that if the market were to go down they would not lose their money by following Mr Kaye's property investment strategies, when, in fact:

  • the strategies do not enable ordinary Australians to become millionaires
  • neither Mr Kaye nor NII had reasonable grounds for claims that an ordinary Australian would, if they followed Mr Kaye's strategies, become a millionaire, and
  • neither Mr Kaye nor NII had reasonable grounds for making claims that five volunteers who were provided training by Mr Kaye would become property millionaires in six months without using their own money or taking on a risk of debt.

The court also found that Mr Kaye and NII had claimed that a thousand ordinary people who signed up with NII and paid to be taught property investment strategies would become property millionaires within 12 months when in fact neither Mr Kaye nor NII had reasonable grounds for making the representation.

Justice Kenny made orders of declarations and permanent injunctions against Mr Kaye. The ACCC was also awarded costs in the matter.
 
Mr Kaye lodged a Full Federal Court appeal against the decision on 12 November 2004, and an appeal hearing date had been set for 16 May 2005, but a Notice of Discontinuance was filed with the Federal Court by Mr Kaye's lawyers on 23 March 2005.
 
"The ACCC is pleased that Mr Kaye has dropped his appeal against the Federal Court's decision, which still stands as a warning to all other property investment spruikers and the general public that the ACCC will not hesitate to take court action where it feels that consumers have been deceived by untruthful advertising", ACCC Chairman, Mr Graeme Samuel, said today.