The Australian Competition and Consumer Commission has obtained by consent interlocutory injunctions in the Federal Court in proceedings brought against Titan Marketing Pty Ltd (Titan) in relation to alleged contraventions of the Australian Consumer Law (ACL), including misleading and unconscionable conduct.
The interlocutory injunctions, made by consent on 24 June 2013, restrain Titan, in relation to selling or attempting to sell any goods, from:
- entering any Indigenous community that requires visitors to obtain permission from an appropriate authority in order to enter that community;
- making any representation that Titan has an affiliation with any charity or aid organisation.
The interlocutory orders also restrain Titan from requesting or accepting payment from any consumer under an unsolicited consumer agreement negotiated in person or by telephone, unless certain conditions are met.
These conditions include that Titan must:
- have formed the view that the consumer has the capacity to read and understand English
- have clearly stated that its purpose is to offer to sell products or services to the consumer
- have notified the consumer of their right to request the salesperson leave the premises
- provide each consumer with information regarding the consumer’s rights, including their right to cancel the agreement during the statutory ten business day cooling off period.
The injunctions apply until further or final orders are made by the court.
The ACCC is seeking final orders against Titan and its sole director, Mr Paul Giovanni Okumu, including declarations that Titan’s conduct contravened the ACL, injunctions, pecuniary penalties, a community service order and costs.
The matter is listed for a directions hearing in the Federal Court, Brisbane at 9:30am on Thursday 25 July 2013.
Background
On Friday 14 June 2013, the ACCC instituted legal proceedings against Titan for alleged misleading and unconscionable conduct when conducting door-to-door sales of first aid kits and water filters in Indigenous communities and other locations in Queensland, New South Wales and the Northern Territory.
The ACCC also alleges that Titan:
- contravened the unsolicited consumer agreement provisions of the ACL;
- made false or misleading representations in relation to Titan’s affiliation with a charity group, consumers’ refund rights and the value of the goods sold by Titan; and
- entered into contracts with consumers which contained an unfair contract term, which gave Titan the right to automatically debit the whole of the remaining amount from the consumer’s bank account or credit card if the consumer missed a single payment.
Interlocutory injunctions are court orders made pending the final determination of a case.