The Australian Competition and Consumer Commission has commenced legal proceedings in the Federal Court against Global Pre Paid Communications Pty Ltd, In-Touch Networks Pty Ltd and several of its directors and employees.
The ACCC is concerned about the alleged misrepresentations made by Global Pre Paid Communications about the level of projected profitability, location support and maintenance of vending machines that sell pre paid telephone cards. Additionally, the ACCC is concerned about alleged misrepresentations made by Global Pre Paid Communications and In-Touch Networks regarding the sale of Swisscom easyRoam SIM card distributorships.
The ACCC has alleged contraventions of sections 52 and 59 of the Trade Practices Act 1974. The ACCC has also alleged that the relationship of Global Pre Paid Communications with its vending machine operators is a franchise relationship and that Global Pre Paid Communications is in breach of the Franchising Code of Conduct. The ACCC is seeking injunctions and other orders against both Global Pre Paid Communications, In-Touch Networks and the other named respondents.
Section 52 prohibits misleading and deceptive conduct in trade or commerce. Section 59 of the Act provides that a corporation shall not make false or misleading representations about the profitability or risk or any material aspect of any business activity. The ACCC is taking representative action on behalf of consumers who have suffered loss from the alleged conduct.
A directions hearing will be held in Sydney on 17 July 2003 before Justice Gyles.