In April 2016 the ACCC obtained a judgement in the Federal Court against Nurofen producer Reckitt Benckiser (‘RB’) for misleading labelling regarding various product ranges of Nurofen. RB had been advertising these product ranges as targeting specific types of pain, and charging more for that range when in fact there was no difference between the active ingredients in the specific product ranges and the general pain range. Initially the ACCC obtained a judgement against RB for $1.7 million.
The ACCC appealed this judgement for numerous reasons, one of which was that it was inadequate. The Full Court of the Federal Court unanimously agreed that $1.7 million is relatively inconsequential for the kind of multinational company that RB is. Based upon this the Full Court increased the judgement order to a whopping $6million.
The significance of this decision should not be lost on large companies with multimillion dollar turnovers. It is also holds significant takeaway lessons for small and medium businesses that make statements and representations to the market. It demonstrates an increased willingness not only on the part of the ACCC to seek large orders against companies, but for the courts to actually award them.
If you have further questions, please contact us at frank@franklaw.com.au.
This is not legal advice.