LAW514 Australian Competition and Consumer Commission Assignment
Order Code: IAH 28
Question Task Id: 0
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The Australian Competition and Consumer Commission (ACCC) is about to commence legal proceedings against Mobileworld Operating Systems Pty Ltd (trading as ‘Crazy Js’). The ACCC alleges that ‘Crazy Js’ has engaged in misleading or deceptive conduct by representing in its promotional material that mobile phone handsets are available “free” or for “$0”. The ACCC claims that, in fact, consumers are required to pay for the handsets through higher call rates than those available on comparable mobile phone plans that do not include a handset.
Crazy Js’ managing director recently said in a press release: “We stand by our advertising and the value of our products… The complaint against us relates to ads that ran last year which are no longer running… but we are happy to work with the ACCC to correct any misunderstanding.”
(a) Advise Crazy Js as to the strength of the ACCC’s case against it.
(b) Is there any ‘bait advertising’ involved in this case?
(c) In your legal opinion, should the ACC seek to prosecute Crazy Js for a criminal breach under s. 29 of the Australian Consumer Law 2010 (ACL)?
(d) What makes s. 29 so different from s. 18?
NB. Refer to the relevant sections of the ACL that may apply and the applicable case law to support all your answers. (5 marks for each answer).