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Contempt of Court – Lessons from Ultratune’s $1.5 million fine for contempt

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Contempt of Court – Lessons from Ultratune’s $1.5 million fine for contempt

In an previous article discussing the ACCC’s enforcement priorities for 2024-25, we noted that the Australian Competition and Consumer Commission (ACCC) has continued to monitor strict compliance with small business codes of conduct, including the Franchising Code of Conduct (Franchising Code).

 

In particular, the ACCC had pursued UltraTune, for contempt of Court when Ultratune failed to comply with orders made by the court requiring Ultratune to take specific actions. On 28 January 2025, UltraTune’s appeal was dismissed by the Full Federal Court.

 

UltraTune’s story serves as an important reminder to ensure active monitoring of business’ compliance with all the obligations including those imposed on them by the law or court order and those that they might voluntarily agree to undertake.

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Navigating a Restructure Under the Corporations Act: Protection Against Contractual Rights to Help Your Business Get Back on Track

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Navigating a Restructure Under the Corporations Act: Protection Against Contractual Rights to Help Your Business Get Back on Track

If your business is restructuring, contractual rights triggered solely by the restructure or financial distress may be rendered unenforceable under section 454N of the Corporations Act 2001 (Cth). This statutory protection can help a business stabilise and continue trading through difficult times. This article reviews a recent case of Okami SA Newton Pty Ltd v Newton SC Pty Ltd which considered the operation of this section.

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Unequivocally exposed: Lessons learned from ASIC’s greenwashing case against Active Super

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Unequivocally exposed: Lessons learned from ASIC’s greenwashing case against Active Super

Active Super was found to have made false or misleading representations by using unequivocal language, and engaged in conduct liable to mislead the public in relation to investments it made.

The case provides further insights into the latest developments on ASIC’s ongoing greenwashing enforcement action.

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Green Screens: Vanguard’s Greenwashing Leads to $12.9 Million in Penalties

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Green Screens: Vanguard’s Greenwashing Leads to $12.9 Million in Penalties

Last year, the Federal Court of Australia handed down its decision in Australian Securities Investment Commission v Vanguard [2024] FCA 308. This case serves as a reminder that business who are making sustainable investment claims must ensure that those claims are not misleading or deceptive in nature.

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Katy Perry wins out against Australian clothing designer Katie Perry in trade mark dispute

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Katy Perry wins out against Australian clothing designer Katie Perry in trade mark dispute

“This case is an unfortunate one in the sense that two enterprising women in different countries each adopted their name as a trade mark at a time that each was unaware of the existence of the other.”

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Sladen Snippet - Proposed General and Specific Prohibitions On Unfair Trading Practices – Chance To Submit Your Views

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Sladen Snippet - Proposed General and Specific Prohibitions On Unfair Trading Practices – Chance To Submit Your Views

On 15 November 2024, the Treasury release a consultation paper on the design of proposed general and specific prohibitions on unfair trading practices. Options to amend the Australian Consumer Law will be considered and agreed in consultation with States and Territories.

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“I was advised to ignore them” - what to do when faced with copyright demands

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“I was advised to ignore them” - what to do when faced with copyright demands

Receiving a letter of demand alleging copyright infringement can be daunting. However, allegations of infringement should not be ignored, so as not to be exposed to significant additional damages. A recent decision from the Federal Court highlights the importance of acknowledging such demands.

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Can you Mislead or Deceive Someone if You Have Honestly Relied on Your Lawyers Advice? A Case Study on ASIC v Retail Employees Superannuation Pty Ltd

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Can you Mislead or Deceive Someone if You Have Honestly Relied on Your Lawyers Advice? A Case Study on ASIC v Retail Employees Superannuation Pty Ltd

The Federal Court of Australia’s judgment in ASIC v Retail Employees Superannuation Pty Ltd highlights that if a corporation honestly relies on advice from their lawyers that may provide reasonable grounds to defend the making of a representation that concerns the present state of affairs.

The Federal Court found that representations made by Retail Employees Superannuation Pty Ltd (REST) regarding their rules and practice were opinions expressed as to the law based on reasonable grounds due to reliance on advice received from their lawyers and other trusted sources. Therefore, the representations made could not amount to misleading or deceptive conduct.

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Why it is important to have disclaimers: a lesson learned from Mallonland Pty Ltd v Advanta Seeds Pty Ltd

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Why it is important to have disclaimers: a lesson learned from Mallonland Pty Ltd v Advanta Seeds Pty Ltd

The High Court of Australia’s judgment in Mallonland Pty Ltd & Anor v Advanta Seeds Pty Ltd [2024] HCA 25 emphasised the significance of incorporating clearly written disclaimers on your product’s packaging to limit your liability for pure economic loss claims in negligence.

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The Importance of Clear and Formal Documentation by Companies: Lessons from Aurora Australasia Pty Ltd v Hunt Prosperity Pty Ltd

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The Importance of Clear and Formal Documentation by Companies: Lessons from Aurora Australasia Pty Ltd v Hunt Prosperity Pty Ltd

A company director’s request to redeem money from a unit trust has been rejected by the Court. The New South Wales Supreme Court ruling emphasises the need for clear documentation of intended transactions within a company structure.

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‘Subject to’: why these words can be a trap when contracting if you are not clear about what you intend.

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‘Subject to’: why these words can be a trap when contracting if you are not clear about what you intend.

The specific wording of a contract is crucial to its interpretation and may be beneficial or a trap to parties. Many parties fail to understand the implications that the well-known phrase ‘subject to contract’ will have on their agreements. Masters v Cameron (1954) 91 CLR 353 is the leading Australian case which examines the consequences of certain wording on parties to a contract, and whether such wording leads to an enforceable and binding contract. 

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Sladen Snippet - Consultation process Franchising code of conduct review

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Sladen Snippet - Consultation process Franchising code of conduct review

The Australian government has proposed reforms to the Competition and Consumer Act in response to the Food and Grocery Code of Conduct and Franchising Code of Conduct reviews. The consultation process closes on 4 October 2024 and welcomes submissions from interested stakeholders.

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Winding up process and considerations for creditors following an unsatisfied statutory demand

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Winding up process and considerations for creditors following an unsatisfied statutory demand

The most common basis upon which creditors make an application to wind up a company and appoint liquidators is upon the non-compliance with a Creditor’s Statutory Demand. If the debtor company ignores the Creditor’s Statutory Demand and no payment or compromise is reached then the company is presumed insolvent, paving the way to wind up the company.

This article contains an explanation of the steps required when lodging an application for winding up in these circumstances, as well as some helpful tips to navigate the process effectively.

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Bankruptcy: Determining which debts survive or can be recovered from a bankrupt

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Bankruptcy: Determining which debts survive or can be recovered from a bankrupt

If you have been declared bankrupt, or are looking to recover debt from an individual or company that has been declared bankrupt, you may be wondering what happens to debts following a declaration of bankruptcy.

This article sets out what debts are and are not recoverable from a bankrupt person, including specific debts which survive bankruptcy and remain recoverable by creditors even after the bankruptcy ends.

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Franchising Update: Peak Physique found liable for representations which induced purchase of franchise

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Franchising Update: Peak Physique found liable for representations which induced purchase of franchise

On 1 August 2024, the Magistrates Court of Queensland found Peak Physique Franchisor Group Pty Ltd (Peak Physique) engaged in misleading and deceptive conduct and was in breach of section 18 Australian Consumer Law through its conduct which induced the purchase of one of their premises through representations of ongoing support to the franchisee and the profitability of the franchise purchased.

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Collective bargaining for franchisees: how to negotiate better terms together without raising competition concerns

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Collective bargaining for franchisees: how to negotiate better terms together without raising competition concerns

Collective bargaining presents on its face an attractive option for franchisees. By joining forces and splitting negotiating costs, franchisees may be able to use collective power to strengthen their bargaining position and negotiate more favourable outcomes with their franchisor.

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ACCC Enforcement and Compliance Priorities for 2024-25: What this means for franchises

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ACCC Enforcement and Compliance Priorities for 2024-25: What this means for franchises

The ACCC has announced its enforcement and compliance priorities for 2024-2025. This article explores what this may mean for franchises.

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ACCC Report on Unfair Contract Terms, Case Update and Franchising Review Report Summary Findings and Recommendation

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ACCC Report on Unfair Contract Terms, Case Update and Franchising Review Report Summary Findings and Recommendation

This update replicates a legal update provided to the Franchise Council of Australia’s February breakfast at Kooyong Lawn Tennis Club.

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A Burger with the Lot – ‘Big Jack’ is not deceptively similar to ‘Big Mac’

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A Burger with the Lot – ‘Big Jack’ is not deceptively similar to ‘Big Mac’

On Thursday 16 November 2023, the Federal Court handed down the decision McD Asia Pacific LLC v Hungry Jack’s Pty Ltd [2023] FCA 1412 (McD) where it was held the trade mark ‘BIG JACK’ and ‘MEGA JACK’ were not deceptively similar to McDonald’s registered trade marks ‘BIG MAC’ and ‘MEGA MAC’.

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Is a VSBC certificate valid if there has been no retail lease mediation?

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Is a VSBC certificate valid if there has been no retail lease mediation?

A recent Supreme Court decision has made it clear that there is nothing in the Retail Leases Act that restricts the issue of a certificate by the VSBC until after a mediation has been conducted and the absence of a mediation does not invalidate a certificate. The VSBC can form a view that a mediation is unlikely to resolve a dispute based on the refusal of one party to participate in a proposed mediation and issue a valid certificate so that an aggrieved party can commence proceedings in VCAT.