After Australian Competition and Consumer Commission action, the Federal Court, Brisbane today handed down orders after previously finding that a franchisor promoting international franchises to produce mechanical car parks had engaged in misleading and deceptive conduct. The Court found that International Technology Holdings Pty Ltd, its subsidiary Europark International Pty Ltd and Australian Technologies Pty Ltd, and director, Garth Eaton, had engaged in the conduct by representing ownership of the intellectual property associated with the Europark System and the marketing of the system. In considering Mr Eatons assertion that certain intellectual property rights in the Europark system had been transferred to his company, Justice Spender stated: "I simply do not believe Mr Eatons attempted explanation of this proposal".
In finding that Mr Eatons explanation of the Europark system was neither credible nor consistent, Justice Spender stated that Mr Eaton "is in my assessment, a glib grandiloquent rogue".
After a detailed examination of the system, the Court found that there was nothing of value that Europark had to offer in consideration of the substantial franchise payment required of potential investors.
In addition, the Court considered that the claim by Mr Eaton that a substantial portion of the franchise fee would be tax deductible was untrue. "This is an important example of the ACCC pursuing its goal of protecting the interests of the small business sector in Australia," ACCC Chairman, Professor Allan Fels, said today. "Mr Eaton and his associates made many claims to prospective investors which turned out to be misleading and deceptive. The small business people who were targeted through national newspaper advertisements and seminars were presented with information which suggested that Europark enjoyed world wide rights to the system and were able to provide substantial tax incentives for investors".
Amongst other matters, the Commission alleged that representations by the respondents gave the impression to prospective investors that they had exclusive rights over the design for the mechanical car-parking system were false and misleading. The ownership of the patent rights is still the matter of a dispute between the respondents and third parties. Consequently, the ACCC alleged that the respondents had breached sections 52,53(c) and 53(d) of the Trade Practices Act 1974.
The Court restrained Mr Eaton, Europark and associated companies, from promoting and marketing the Europark System or engaging in the same conduct in relation to similar car parking systems. The Court also ordered Mr Eaton to pay the ACCC's costs of the proceedings.
Further information Professor Allan Fels, Chairman, (06) 264 2828 or pager (016) 373 536 Ms Lin Enright, Director, Public Relations, (06) 264 2808
