National Training Conference, an American organisation which runs property investment seminars, has agreed to consent orders in the Federal Court requiring it to correct misrepresentations made in invitations for seminars it is running in Australia this week.
The consent orders follow Australian Competition and Consumer Commission action against National Training Conference and two individuals, alleging misleading and/or deceptive conduct in relation to the promotion of the seminars, marketed as the Australian Financial Superstars Conference.
Late yesterday (Monday) the ACCC applied to the Federal Court, Sydney for ex parte orders to serve the application on the solicitors for NTC in order that the proceedings be heard by the court before the seminars scheduled to take place on Thursday, Friday and Saturday in Brisbane, Melbourne and Sydney.
The ACCC's allegations concerned invitations that were mailed directly to Australian consumers containing allegedly misleading and deceptive statements relating to the nationality of the seminar presenters and the benefits of the Financial Superstars Conference seminars.
National Training Conference has admitted to certain misrepresentations made in the invitations and has agreed to place prominent signage at the entrance to the seminars, and make oral statements to attendees at the commencement of the seminars to the following effect:
- that the phrase 'Australia’s Greatest Financial Super Stars', which appears in the invitations to the seminars is incorrect and in fact the seminar speakers are not Australian, have never been Australian, and have no direct experience in the Australian property market
- dollar figures which are quoted in the invitations are expressed in US dollars and the statements made in the invitations about investing in real estate relate to US conditions and have no necessary application to Australian circumstances
- the phrase 'unique Government approved' investment, which appears in the invitations, does not refer to any approval by the Australian Government, and
- references in the invitations to "becoming wealthy" are based on techniques that are referred to during the course of the seminars, the success of which is not guaranteed by the promoters or speakers.
"This is a significant result for the ACCC because it ensures that the misrepresentations contained in the promotional material for these seminars will be corrected when consumers attend the seminars", ACCC Chairman, Mr Graeme Samuel, said today. "It should also send a warning to other promoters of property investment programs that the ACCC will not hesitate to take action to protect consumers from misleading or deceptive conduct in the promotion of such programs”.
Each party has agreed to pay its own costs.