The Australian Competition and Consumer Commission has commenced proceedings against Peter Foster in the Federal Court, Sydney, alleging contempt of court.
The ACCC alleges that Peter Foster has breached two orders made against him by Justice Lander in ACCC v Chaste Corporation Pty Ltd (in liquidation) & Ors in September 2005. The Chaste orders were in effect until 2 September 2010.
The ACCC is alleging that from December 2009 to 2 September 2010 Peter Foster:
- was directly or indirectly knowingly concerned in the promotion or conduct of the business of Sensaslim which was a business relating to weight loss and thereby breached order 27 of Chaste.
- was knowingly concerned in Sensaslim, making or permitting to be made representations as to the particular standard or quality of the Sensaslim Solution, without Sensaslim providing the representee, prior to making the representation, with a copy of the Chaste orders, or informing the representee of the existence of the orders and giving the representee the address of the Federal Court website, and thereby breached order 29 of Chaste.
The ACCC sought orders for the arrest and imprisonment of Peter Foster due to concerns that he may leave the jurisdiction. The Federal Court issued warrants for the arrest and imprisonment of Peter Foster pursuant to the contempt charge. Peter Foster was arrested on Friday 18 November and placed in custody. A further court date has yet to be set.
On 2 September 2005, Justice Lander made orders in ACCC v Chaste Corporation Pty Ltd (in liquidation) & Ors, including the following orders:
"The fourth respondent [Peter Foster] be restrained, for five years from the date of this order, from being directly or indirectly knowingly concerned in the promotion or conduct by a corporation of any business relating to weight loss, cosmetic or health industry products or services of any kind." (Order 27)
"The fourth respondent be restrained for a period of five years from the date of this order from in any manner being knowingly concerned in any corporation in trade or commerce, making, or permitting to be made, any representation as to the nature, quality, fitness for any purpose, testing, history, composition, standard, approval by any person, performance characteristics, uses or benefits of any good or service unless, prior to making the representation:
29.1 he believes the representation to be true and accurate;
29.2 the corporation informs the representee in writing of all information of which he is aware that refutes, qualifies or contradicts any part of the representation; and
29.3 the corporation provides the representee with a copy of these orders or informs the representee of the existence of these orders and gives the representee the address of the Federal Court website, namely www.fedcourt.gov.au, from which a copy of these orders can be obtained." (Order 29)