Ex parte injunctions have been granted against Giraffe World Australia, its directors and other individuals over an an alleged pyramid selling scheme after Australian Competition and Consumer Commission Federal Court action.
The ACCC alleged that Giraffe World's conduct contravened the referral selling and pyramid selling provisions of the Trade Practices Act 1974. The ACCC also alleged Giraffe World made false representations about its negative ion mats. 'The ACCC sought the interlocutory orders after a number of complaints from consumers about the scheme,' ACCC Chairman, Professor Allan Fels, said today.
'It is understood more than 5,000 consumers were recruited, with more expected as Giraffe World opened Melbourne and Brisbane premises. 'The scheme is believed to have been operating since July 1997. It involves purchasing a device, an 'Ion-mat', for $2,900. For an additional $350 consumers can join a Grow Rich scheme where they get a commission for recruiting new members. The commission increases according to the customers introduced. 'The ACCC plans representative proceedings on behalf of consumers who suffered loss after taking part in the Giraffe World scheme.'
In the Federal Court, Sydney yesterday Justice Kevin Lindgren ordered: that the other respondents be restrained from inducing any persons to participate in the Giraffe World Grow Rich scheme or any similar scheme; that the respondents be restrained from promoting, advertising, holding out or participating in the Giraffe World Grow Rich scheme or any similar scheme; and that the respondents be restrained from removing from the jurisdiction disposing of, mortgaging, assigning, charging or otherwise dealing with their assets other than for specific living business and legal expenses.
A directions hearing will be held at the Federal Court, Sydney on 8 May at 9.30 a.m.
*The ex parte injunctions have been lifted. Giraffe World is continuing to carry on business. The case is proceeding on an injunction basis and no longer as a representative action. The next directions hearing is set down for 13 October 1998.