Part Two: "I've been duped!" - Misleading and Deceptive Conduct

In our recent article regarding misleading and deceptive conduct, we explored the factors a Court will consider in determining whether such conduct has occurred. As we saw there, there’s more to it than simply lying. Here though, we look at what you can do once misleading and deceptive conduct has been established.

Remedies for misleading and deceptive conduct

If the Court finds that misleading and deceptive conduct has occurred and that the conduct did contravene section 18 of the Competition and Consumer Act, the following remedies may be available to you:

1. Injunction

The Court may grant an injunction which requires the liable person to do any of the following:

• refund money;
• transfer property;
• honour a promise;
• destroy or dispose of goods.

2. Damages

Alternatively (or additionally), the Court may grant damages to the disadvantaged party whereby you would recover from the defendant the amount of the loss or damage suffered as a result of the misleading and deceptive conduct of the defendant. The exact value of these damages is determined in a order to compensate the wronged party.

3. Compensation Orders

The ACL provides a right for a person to apply to a court for a compensation order, to compensate the person for loss or damage suffered, or likely to be suffered, as a result of a contravention of the ACL. This is different to damages in terms of process and outcome; damages are purely monetary in nature). The court may make any order it considers appropriate to compensate the person or reduce their loss or damage. Orders that might be made under this provision may include orders to vary the contract with the defendant, refund the money paid by you, or order for compensation to be paid to you.

In our next article, we'll take a look at a recent case involving misleading and deceptive conduct. 

If you have further questions, please contact us at frank@franklaw.com.au.

This is not legal advice.