The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court in Melbourne against Wizard Home Loans Pty Ltd, alleging breaches of the misleading or deceptive conduct provisions of the Trade Practices Act 1974.
The ACCC alleges Wizard breached section 52 of the Act by placing advertisements for Mobile Lending Managers (MLM) in newspapers in New South Wales, Victoria and Queensland which were liable to mislead the public as to the nature of the MLM position. The ACCC alleges the advertisements were likely to mislead persons into believing the MLM positions were employed positions when in actual fact they were self employment opportunities.
The ACCC further alleges that annual remuneration figures provided to MLM's were likely to mislead.
The ACCC is also taking a representative action seeking compensation on behalf of an individual that responded to an advertisement and accepted an MLM position.
The ACCC is seeking:
- declarations
- an injunction restraining Wizard from engaging in similar conduct for a period of three years
- a disclosure order directing Wizard to disclose to all persons interviewed for an MLM position greater information as to the remuneration earned by persons in MLM positions
- an order directing Wizard to implement a trade practices compliance program
- a compensation order, and
- costs.
A directions hearing for this matter is listed before Justice Peter Gray on 20 December 2004 in the Federal Court, Melbourne.