Mildura Fruit Juices Pty Ltd v Bannerman, Ronald Moore & Anor [1983] FCA 97
Federal Court of Australia
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CATCHWORDS
Trade Practices - Notice pursuant to s.155 of the
Trade Practices Act 1974 - Constitutional validity of
s.55 of the Act - Whether "matters" in notice properly
and adequately identified - Whether notice valid.
Trade Practices Act 1974, ss.55, 155.
MILDURA FRUIT JUICES PTY. LTD. v. RONALD MOORE BANNERMAN
and TRADE PRACTICES COMMISSION
Frankia J.
Sydney
20 May 1983
IN THE FEDERAL COURT OF AUSTRALIA )
VICTORIA DISTRICT REGISTRY ) No. VG 169 of 1982
GENERAL DIVISION )
MILDURA FRUIT JUICES PTY. LTD.
Applicant
RONALD MOORE BANNERMAN
First Respondent
TRADE PRACTICES COMMISSION
Second Respondent
ORDER
JUDGE MAKING ORDERS: Franki J.
DATE OF ORDERS: 20 May 1983
WHERE MADE: Sydney
THE COURT ORDERS THAT:
1. Declare that the applicant 1s not obliged to comply with
the notice under s.155 of the Trade Practices Act 1974
dated 12th October 1982 received by it from the first
respondent.
2. Costs are reserved for submissions to be made at a later
date.
IN THE FEDERAL COURT OF AUSTRALIA )
VICTORIA DISTRICT REGISTRY ) No. VG 169 of 1982
GENERAL DIVISION )
MILDURA FRUIT JUICES PTY. LTD.
Applicant
RONALD MOORE BANNERMAN
First Respondent
TRADE PRACTICES COMMISSION
Second Respondent
Sydney
20 May 1983
REASONS FOR JUDGMENT
FRANKI J.
This 1s an application under the Administrative
Decisions (Judicial Review) Act, 1977 for a review of a decision
by Mr Ronald Moore Bannerman, the Chairman of the Trade Practices
Commission ("the Commission") to serve a notice under s.155 of
the Trade Practices Act, 1974 ("the Act") upon the applicant,
Mildura Fruit Juices Pty. Ltd. The applicant seeks orders
pursuant t9 s.16 of the Administrative Decisions (Judicial
Review) Act, unter alia, declaring that the applicant 1s not
obliged to comply with the notice. The notice, together with a
letter signed by Mr P.J. Cronin, Assistant Commissioner, was
received, on or about 14 October 1982, by the applicant. The
letter referred to a question having been asked in Parliament and
to the fact that "the Minister then responsible for the Trade
Practices Act" had asked the Commission "to investigate wnether
misleading and deceptive conduct is occurring in the fruit juice
industry". The letter continued:
"Preliminary information available from
government and industry sources suggests that
dilution of orange juice products is occurring
on an industry wide basis. I am concerned
that 1f this is so, producers of orange juice
products, including your company, ay have
contravened sections 52(1), 53(a) and 55 of
the Act."
The notice followed what seems t9 be the general
practice for such notices. It set out that it was given pursuant
to s.155 of the Trade Practices Act, 1974 and that the Chairman
"having reason to believe" that the applicant "is capable of
furnishing information and producing docwnents relating t9
matters that constitute, Or may constitute, contraventions (of
the Act) by producers of orange juice products". The
contraventions of the Act referred t9% were dealt with and the
applicant was required to supply the information specified in the
first schedule to the notice and produce the documents specified
in the second schedule.
I set out that part of the notice which describes the
alleged contraventions:
"Pursuant to section 155 of the Trade
Practices Act 1974 (hereinafter referred to as
'the Act'), I, RONALD MOORE BANNERMAN, -
Chairman of the Trade Practices Commission,
having reason to believe that Mildura Fruit
Juices Pty Ltd (hereinafter referred to as
'the company') 1s capable of furnishing
information and proa@ucing documents relating
tO matters that constitute, or may constitute,
contraventions by producers of orange juice
products in Australia, of -
1. sub-section 52(1) of the Act, namely that
companies supplying orange juice products
an trade or commerce have engaged or are
engaging in conduct that is misleading or
deceptive or is likely to mislead or
deceive, namely, representing as orange
juice and orange juice concentrate,
products which do not consist wholly of
juice obtained from oranges; and/or
representing as orange juice drink and
orange juice drink concentrate, products
containing a lesser percentage of juice
obtained from oranges than that indicated
on containers of the products; or
11. sub-section 53(a) of the Act, namely that
companies producing orange juice
products, in trade or commerce, in
connection with the supply of orange
juice, orange juice concentrate, orange
Juice drink and orange Juice drink
concentrate, have falsely represented or
are falsely representing the products as
being of a particular standard, quality,
grade or composition; or
aii. section 55 of the Act, namely that
producers of orange juice products in
trade or commerce have engaged or are
engaging in conduct that is liable to
mislead the public as to the nature, the
manufacturing process, the
characteristics or the suitability for
their purposes, or the quantity, of
products labelled and described as orarge
Juice, orange juice concentrate, orange
Juice drink and orange Juice drink
concentrate."
The applicant's solicitors on 5 November 1982 made the
following enquiry by telex to the Chazrman:
reply by
"We refer to your notice under s.155 of the
Trade Practices Act 1974 dated 12th October
1982 and to previous discussions and
correspondence with Mr P.J. Cronin.
Paragraph 1 of the introductory part of the
notice sets out two matters which it 1s said
constitute, or may constitute, a contravention
of s.52(1) of the Act.
Would you please confirm that it is the same
two matters wnich it 1s said constitute, or
may constitute, & contravention of s.53(a) as
mentioned in paragraph 1i and a contravention
of s.55 as mentioned in paragraph 11i.
In other words, are paragraphs ii and 111 each
to be construed as if they concluded with the
words:
'Namely, representing as orange juice and
orange Juice concentrate products which do not
consist wholly of juice obtained from oranges:
and/or representing as orange juice drink and
erange julce drink concentrate, products
containing a lesser percentage of juice
obtained from oranges than that indicated on
containers of the products?' "
So far as is relevant the Chairman made the
telex on 8 November 1982:
"Your telex 240 of 5.11.82 refers. The
possible contraventi1ons referred to in
paragraphs (1), (11) and (111i) of the notice
under section 155 of the Act addressed to your
client and dated 12 October 1982, derive from
my belief that the results of enquiries at
government and industry level suggests that
dilution of orange juice products may be
eccurring on an industry-wide basis. The
background to the issue of the notice under
section 155 is also referred tO 1n Mr Cronin's
letter of 12 October 19382 accompanying the
notice."
following
The applicant did not attack the manner in which the
demand for information was framed in the first schedule or the
way the documents were described in the second schedule.
Section 155(1), so far as ais relevant to this
application, reads:
grounds:
(1)
"Where ... the Chairnan ... has reason to
believe that a person is capable of furnishing
information, producing docyments ... relating
to a matter that constitutes, or may
constitute, a contravention of this Act ... a
member of the Commission may, by notice in
writing served on that person, require that
person -
(a) to furnish to the Commission ... any such
information;
(b) to produce to the Commission ... any such
doc wments;
The applicant attacks the validity of the notice on five
Section 55 of the Act is not within the constitutional
power of the Commonwealth.
That part of the notice which purports to identify the
matters constituting the contraventions or possible
contraventions was ambiguous, inadequate and
unintelligible.
(3) The word "may" in s.155(1) looked only to the future.
(4) The Chairman based his decision to issue the notice upon
the existence of particular facts which did not exist.
(5) The person issuing the notice must believe that the
person to whom the notice was issued was capable of
furnishing the precise information requested.
Notices as required by s.78B of the Judiciary Act 1903
were served on the Attorneys-General for the Commonwealth and for
the State of Victoria respectively. The Attorney-General for the
State of Victoria did not appear but senior counsel, who appeared
for the respondents, announced his appearance also for the
Attorney-General of the Commonwealth.
Apart from the text of conventions and = certain
regulations to which I will refer Later, the only evidence in
this application was in affidavits filed by a partner in the firm
of solicitors acting for the applicant and a Mr Kurt Zentner, a
public analyst, consulting chemist and microbiologist.
The respondents had given notice of an intention t9
contend that the decision of the Chairman was not a decision to
which the Administrative Decisions (dudicial Review) Act applied
but before me 1t was conceded that this decision was one in
respect of which an application under that Act coulda be made to
this Court.
I pass now to consider the five grounds of attack 'upon
the notice.
Ground (1)
This ground invelves a consideration of the power of the
Australian Parliament to enact s.55 of the Act which was
mentioned but not considered in Queen v. The Judges of the
Australian Industrial Court; Ex parte C.L.M. Holdings Pty. Ltd.
(1977) 136 C.L.R. 235. Section 2(2) of the Act of 1974 provided:
"Section 55 shall come into operation on a
date to be fixed by Proclamation, being a date
not earlier than the date on which the Paris
Convention for the Protection of Industrial
Property revised as at Stockholm on 14 July
1967 enters into force for Australia."
This section was repealed when the Act was amended in 1977.
It was common ground that Australia had ratified the Stockholm
revision when s.55 was proclaimed to come into force on 27
September 1975. Section 55 provides:
"A person shall not, in trade or commerce,
engage in conduct that is liable tn mislead
the public as to the nature, the manufacturing
process, the characteristics, the suitability
for their purpose or the quantity of any
goods."
Senior counsel for the respondents relied mainly on the
provisions of s.51(xxix) of the Commonwealth of Australia
Constitution Act giving the Commonwealth Parliament power to mnake
laws for the peace, order and gond government of the Commonwealth
with respect to "External affairs". The respondents also argued
that the Legislation could be supported, at least in relation to
a trading or financial corporation, under s.51(1) and (xx) of the
Constitution providing respectively powers to make Laws for the
peace, order and good government of the Commonwealth in respect
of "Trade and commerce with other countries, and among the
States" and "Foreign corporations, and trade or financial
corporations forned within the limits of the Commonwealth".
The applicant and the respondents each tendered
documents which purported to set out the text of the Paris
Convention in both its French and English form. The applicant
tendered a copy of a document dated 1977 purporting to be
produced by the Secretariat of the United Nations (Treaty Series
Volume 828, pp.305-367) and to set out the terms of the
Convention as "Done at Stockholm on 14 July 1967". The
respondents tendered a copy of a different docwnent, dated 1972,
which also purported to be a document in the "United
Nations~Treaty Series" and to set out the terms of the Convention
"Done at Lisbon on 31 October 1958". Since s.2(2) of the Act, as
1t stood before the amendment in 1977, referred to the Convention
"revised at Stockholm on i4 July 1967" I propose to have regard
to the dociment tendered by the applicant.
There is no doubt under Article 29 the French text
prevails. Article 29(1) reads:
"(1) (a) This Act shall be signed in a
single copy in the French language and shall
be deposited with the Government of Sweden.
(b) Official texts shall be established
by the Director General, after consultation
with the interested Governments, in the
English, German, Italian, Portuguese, Russian
and Spanish languages, and such other
languages as the Assembly may designate.
(c) In case of Gifferences of Opinion on
the interpretation of the various texts, the
French text shall prevail."
It appears that the Director General is the Director
General of the World Intellectual Property Organization. The
English text tendered by the applicant bears the notation
"Translation supplied by the United International Bureaux for the
Protection of Intellectual Property". I was asked t9 work from
the original French text where there was any doubt concerning
translations. Senior counsel for the respondents cast Goubt on
certain parts of the translation in the English text. I have
very considerable doubt about the proper limits of the duty and
powers of a Judge when faced with a submission that ne has a duty
himself to decide, without any expert evidence, whether a
translation of certain words from a foreign language is correct.
However, in this case I think that it is umnecessary for me to
embark upon a consideration of any possible differences between
the proper meanings of the English and French texts.
10.
It was conceded by the applicant that the Paris
Convention for the Protection of Industrial Property was a
Convention of a type proper to be implemented under the external
affairs power and the issue presented to me was whether or not
s.55 of the Act gave effect to any provisions in the Convention
in a way which was within the Commonwealth Pariliatrent's
legislative power.
I consider, in a case where I am requested to interpret
the provisions of a Treaty of this nature, that I am entitled to
look at works of acknowledged reputation. Such a work is that of
ctephen P. Ladas Patents, Trademarks, and Related Rights,
National and International Protection, Harvard University Press,
1975. I set out the English translation of Articles 1(2)(3) and
10528 of the Convention in the document tendered by the applicant
which corresponds with that in Ladas' work at pp.1919, 1923 and
1924.
Article 1
"(1l) ase.
(2) The protection of industrial
property has as its object patents, utility
models, industrial designs, trademarks,
service marks, trade names, indications of
source or appellations of origin and the
repression 9f unfair competition.
(3) Industrial property shail be
understond in the broadest sense and shall
apply not only t9 andustry and commerce
proper, but likewise to agricultural and
extractive industries and to all manufactured
or natural products, for example, wines,
ll.
grain, tobacco leaf, fruit, cattle, minerals,
mineral waters, beer, flowers and flour."
Article 10525
"(1) The countries of the Union are
bound to assure to nationals 9f such countries
effective protection against unfair
competition.
(2) Any action of competition contrary
to honest practices in industrial or
commercial matters constitutes an act of
unfair competition.
(3) The following in particular shall be
prohibited:
1. all acts of such a nature as to create
confusion by any means whatever with the
establishment, the goods, or the
industrial or commercial activities, of a
competitor;
2. false allegations in the course of trade
of such a nature as to discredit the
establishment, the goods, or the
industrial or commercial activities, of a
competitor;
3. indications or allegations the use of
which in the course of trade is liable to
mislead the public as to the nature, the
manufacturing process, the
characteristics, the suitability for
their purpose, or the quantity, of the
goods."
Counsel for the applicant submitted that Article 1obis
(3)3. dealt only with indications or allegations made in a
competitive situation whereas s.55 of the Act was not limited to
competitive situations. Counsel argued that the making of
statements ta the public concerning, for example, the
characteristics of any goods would fall within s.55 whether or
12.
not those statements were made by persons having any competitive
interest in promoting or otherwise dealing in the goods about
which they made the statements. He argued that instances of a
non-competitive situation would include circumstances where all
competitors in a particular field join together in making a
misleading statement. He Grew attention to the fact that s.55
appears in Part V Division 1 of the Act entitled "Consumer
Protection ~- Unfair Practices" and not in Part IV entitled
"Restrictive Trade Practices". My attention was directed to the
words "unfair competition" appearing in Articles 1(2) and 10°3S(1)
and (2) and to the words "of a competitor" in Article 10b1s(3)1.
and 2. none of which appears in 3. Some consideration was
directed to the words "of the goods" at the end of Article 10bis
(3)3. and whether the French text should not be more properly
translated as "of gonds". Ultimately no significance was placed
on this issue because the applicant accepted that I should assyne
that the correct translation was "of gonds". Unfair competition
1s considered by Ladas, supra, volwne III, chapter 45, at
pp.1675-1742, in a chapter entitied "The Repression of Acts of
Unfair Competition". He traces the history of Article 10b1s at
Brussels in 1900 (p.1678), at Washington in 1911 (p.1678), at The
Hague in 1925 (pp.1681-1683), at London in 1934 (pp.1653-1684)
and at Lisbon in 1958 (pp.1684-1685) when paragraph (3)3. of
Article 10518 was adopted and inserted. The learned author deals
with this paragraph at pp.1685-1688, 1705-1706 and in particular
at pp.1733-1735. At p.1733 he says in relation to Article 10515
(3)3:
13.
"This 1s a category of acts which are distinct
from the other two, in that they are directly
concerned with the deception of the public
rather than the protection of the goodwill of
competitors. It 1s true tht a trader who
masleads the public by allegations concerning
the nature or characteristics of his goods
does sO in order to attract customers t° his
goods, and he thereby may divert the clientele
of his competitors for the same kind of gonds.
But the direct and imnediate injury is to the
purchasing public."
The other two paragraphs referred to are paras. 1 and 2 of 1loObis
(3).
At p.1735 he says:
"Tt would seem clear that paragraph 3(3) of
article 10548, as distinguished from paragraph
3(1) and 3(2), purports to protect primarily
the public and only incidentally competing
manufacturers or traders. If so, although the
Convention does not specifically so direct,
the national law of member countries should
provide for direct action by cons.mers against
acts violating this stipulation."
In general I agree with the approach taken by Ladas.
Article 10°15 (3)3. 1s limited to "indications or allegations the
use of which in the course of trade is liable to mislead the
public ...". Section 55 of the Act is limited to conduct "in
trade or commerce ..: Liable to mislead the public ...".. No
argument was addressed to me that this difference was a matter
relevant to the question Of validity and therefore I have not
addressed myself to that question.
14.
I consider that, as a matter of construction, Article 10b1s
(3)3. should be read without Limitation by any other part of
Article 10°45, [I consider that the attack on the validity of s.55
fails since, in my opinion, the submissions that it does not give
effect to the provisions of the convention have not been made out
in this case. I have been referred tn several cases and the
views of several text writers upon the limits of the legislative
powers of the Parliament of the Commonwealth with regard to
"External Affairs". However, in view of ny decision on Ground 2,
I adm not propose to deal further with Ground 1.
Ground (2)
The applicant mounted 1ts attack under this ground upon
the way in which the relevant contraventions were particularised
in relation to s.52(1) and s.53(a) of the Act. The conduct
alleged to be misleading or deceptive under s.52(1) was of two
types, firstly "representing as orange juice and orange juice
concentrate products which do not consist wholly of juice
obtained from oranges" and secondly, "representing as orange
juice drink and orange juice drink concentrate products
containing a lesser percentage of juice obtained from oranges
than that indicated on the containers of the products".
I turn to the law concerning the principles which have
been established by the courts for determining the validity of
notices vwnder s.155.
I refer first to the decision of the Full Court of this
Court in Pyneboard Pty. Ltd. v. Trade Practices Commission and
Bannerman (1982) 39 A.L.R. 565. An appeal was heard by the High
Court and judgment delivered on 18 March 1983 but that Judgment
does not affect the following principles which I consider can be
extracted from the judgment of the Full Court in that case:
(1) "Matters" must be sufficiently identified in the notice
to disclose to the recipient of the notice that the
information he is required to furnish and the docuwnents
he is required to preduce "relate" to one or more of the
"matters" of a kind describeG in s.155(1).
(2) The question of whether the "notice discloses the
necessary relatedness between the documents or
information sought and the identified matters" 1s not to
be approached in an over-technical or hypercritical way
(p.571, 11.37-42).
(3) Lack of clarity (p.572,11.8-13) in the terms of a
particular requirement in the notice or the absence of
the requisite relatedness between the identified
"matters" and the information or dociments sought can
result in the particular requirements being, at least to
the extent of such lack or absence, ultra vires
s.155(1).
16.
(4) The recipient of the notice 1s not required to
reconstruct 1t (p.572) if it is partly invalid because
the information required or the docunents sought are not
properly related to the "matters" identified. This is
subject to a qualification that a "blue pencil" deletion
of what is invalid is not practicable, or where, 1f such
deletion is practicable, 1t would result in
substantially different information being required or
documents sought.
(5) A notice must be issued in good faith for the purpose
for which the power to issue it is conferred and with
regard to the effect that the exercise of the power will
have upon those affected by it.
The judgment proceeds upon the basis that the relevant
"matters" must be properly identified in the notice so that the
recipient of the notice can see that the information required and
the doc:ments sought are properly required and sought as relating
to the "matters" identified.
The requirement of a valid notice was also considered by
a Full Court of this Court in Melbourne Home of Ford Pty. Ltd. v.
Trade Practices Commission (1979) A.T.P.R. NO. 40-107 at
P.18,097. Franki and Northrop JJ. said:
"There 18 no warrant for giving the word
'matter' in sec.155(1) any technical meaning.
17.
The word 1s to be construed in its ordinary
sense of an affair or thing."
In Melbourne Home of Ford Pty. Ltd. v. Trade Practices
Commission (No. 2) (1979) 40 F.L.R. 428 at p.441 Smithers J.
considered the requirement that the matter be identified in the
notice. He said:
"As indicated above the notice must contain
sufficient information to enable the recipient
to perceive that the obligations cast upon him
by the notice are obligations which may
properly be cast upon him according to law.
In the present case he should be able to
perceive that the information and documents
which he is required to furnish and produce do
relate to a matter which constitutes or Tay
constitute a contravention of the Act."
An appeal from this judgment of Smithers J. was taken to
the Full Court of this Court and is reported in (1980) 31 A.L.R.
519. At pp.528-529 in a joint judgment Brennan, Keely and Fisher
JJ. said:
"Ordinarily, when a question arises as to the
validity of a s.155 notice issued under the
first limb, three questions fall for
consideration:-
(1) whether there is a 'matter that
constitutes, or may constitute, a
contravention';
(2) whether the Commission, the Chairman
or the Deputy Chairman (as the case may
be) has reason to believe that the perscn
to whom the notice is given '1s capable
of furnishing information, producing
documents or giving evidence relating to'
that matter; and
18.
(3) whether the information reguired ta
be furnished, the documents required tno
be produced or the evidence required to
be given (as the case may be) relates to
that matter.
The first two of these questions are
material to the existence of the power to
issue a notice, the last to the manner of its
exercise. Only the last question falls for
determination in these proceedings, namely
whether the Chairman has required each 9%f the
applicant companies to furnish information or
produce docywnents other than information or
docwments relating to a matter that
constitutes or may constitute a contravention,
the 'matter' being, in each case, 'that the
company has given effect to a provision of an
arrangement or understanding between the
company and other corporations which has the
purpose, or has or is likely to have the
effect of fixing, controlling or maintaining
the prices for Ford spare parts supplied by
those corporations, in competition with each
other, to motor vehicle body repairers in
Melbourne'.
If the information to be furnished or the
doucments t® be produced in accordance with
the notice respectively answer the description
of 'information relating to' or ''docywmnents
relating to' the matter specified in the
notice, the Chairman's requirement lies within
the power which s.155 confers upon han."
Northrop J. in Dunlop Olympic Pty. Ltd.
Practices Commission (1981) 3 A.T.P.R. No. 40-238 at
sald:
"The power is investigative in nature, alnost
inquisitorial. The limiting factor 1s that
the information required to be furnished or
the dociments to be produced must answer the
description 'information relating to! or
'documents relating to' the matter specified
in the notice."
Vv.
19.
It was submitted before me in relation to matters
alleged to fall under s.52(1) that orange juice and orange juice
concentrate need not consist wholly of juice obtained from
oranges. The affidavit of Mr Zentner set out that commercial
erange juice and orange juice drink marketed in Victoria was
produced by reconstituting a concentrate derived from natural
erange juice and that in the concentrating process there was some
loss and breakdown of some of the ingredients of the juice. When
the juice was reconstituted 1t was necessary to add these
substances back otherwise the reconstituted product would be
substantially dissimilar from the product before concentration.
He also said:
"In my opinion it ais not scientifically
possible to say that a reconstituted product
the ingredients of which are the same as those
of juice derived from natural orange fruit and
which has a brix measure between 8 and 13
and a brix acid ratio of between 8 and 30 is
not orange juice."
Mr Zentner was not cross-examined and there was no other
technical evidence before me.
In my opinion, the identification of the matter is not
to be approached in an over-technical or hypercritical way. It
is sufficient that the matter be identified so that it is shown
that the person giving the notice 1s entitled to require the
information sought to be furnished and the documents sought to be
produced. In my Opinion the notice sufficiently identifies the
matter concerning the representation of orange juice and orange
20.
juice concentrate. I do not think that the argument of the
applicant can succeed on this point.
With regard to the matters alleged to fall under s.52(1)
so far as concerns orange juice drink and orange juice drink
concentrate, counsel for the applicant referred to various Food
and Drug Standards Regulations nade pursuant to the provisions of
various State Acts. As an example, he referred to Regulation 64
to be found in Statutory Rules No. 289 %f 1970 for the State of
Victorla where there was a definition of fruit juices, sweetened
fruit juices and concentrated fruit Juices. In this Regulation
it was provided, inter alia, that fruit juices "shall not contain
added water. They may contain preservative and added vitamins
and minerals as prescribed in Regulation 14, and not more than
four parts per centum of added sugar". He also referred to
Regulation 70 introduced py Statutory Rules No. 361 of 1978 for
the State of Victoria where "Fresh Fruit Drinks" were described
as "drinks prepared for immediate consynption composed of freshly
expressed fruit Jjulce with or without sugar and potable water
carbonated or not". This Regulation also provided in relation to
"Fruit Juice Drinks" that orange juice drinks shall contain not
less than 35% of fruit juice. He also pointed out that these
regulations permitted the addition of a nwnber of other named
substances to be contained in "fruit juice drink". It 1s not
necessary to consider the regulations in particular detail but it
ais sufficient to say basically similar regulations operate in the
ether States of the Commonwealth.
21.
Apart from any regulation, statute or other relevant
instrument, I do not see how it can be likely to mislead or
deceive to describe as "orange juice drink" a product if that
product is in fact orange juice drink. It would appear to me to
be misleading or deceptive conduct to wrongly lapel the product
as containing a greater percentage of orange juice than it in
fact did contain but one would think that the question %f whether
1t was orange juice drink would depend upon the amount of orange
juice in the product and not what was on the label. That is to
say 1t may be likely to mislead or deceive to call a product
"orange juice drink" if it contains only 1 percent of orange
Juice but it would not be likely to mislead cr deceive to call a
product "orange juice drink" if it contained 99 percent of orange
juice irrespective of what, if any, percentage of orange juice
was shown on the label. The question of whether a product is
labelled in a manner which wrongly states the percentage of
orange juice in 1t does not aprear to be related to the question
of whether the product is properly represented as "orange juice
drink". This depends on whether the product complies with any
relevant statutory definition of "orange juice drink" or if there
1s no such definition whether in fact it falls within that
description.
Senior counsel for the respondents did not rely upon
s.63 9f the Act, which deals with cons»mer product information
standards, or pon any prescription of a standard or any state
regulations. Be submitted that they were quite irrelevant in
22.
these proceedings.
A representation that a product contains a greater
percentage of orange juice than it in fact contains may well be a
contravention of s.52(1) but the alleged contravention identified
is unrelated to this question but depends on the truth of a
representation that the product 1s orange juice drink. The
attempt made by the applicant by telex on 5 November 1982 to get
some clarification of the alleged contraventions did not receive
a helpful reply. Much of the information reayired and many of
the documents sought relate to orange juice drink and orange
jJulzce drink concentrate. I consider that this matter was not
properly identified.
I pass now to the contraventions particularised in
relation to s.53(a). These are very broadly defined but I am not
aware of anything which requires contraventions to be identified
in any particular detail if they are otherwise properly
identified. The identification of the matter must be sufficient
to satisfy the required standard. In relation to s.53(a) this is
not a case where an alleged contravention has been wrongly
identified so that nothing that could constitute an alleged
contravention 1s identified. An alleged contravention had been
identified although in very broad terms. I would not set the
notice aside in this case if the only question was whether the
contraventions alleged to fall within s$.53(a) have been
identified sufficiently.
23.
Ground (3)
In support of this ground the applicant submitted that
the word "may" in s.155(1) referred only to the future. I was
referreag to W.A. Pines Pty. Ltd. v. Bannerman (1980) 41 F.L.R.
175 and in particular, to the judgments of Brennan J. at
pp-.179-180 and Lockhart J. at pp.188-189. I was also referred to
the unreported judgment of Northrop J. in Davenport v. T.P.C.
delivered on 12 April 1983 at pp.12-19. Counsel accepted that
the judgments of Brennan J. in W.A. Pines Pty. Ltd. v. Bannerman,
and of Northrop J. in Davenport v. T.P.C. were contrary to his
submission and he merely made the formal submission that these
judgments should not be followed but he did not ask me to
consider the question.
Ground (4)
The arguments that were advanced under this ground are
included in those which were put under the second ground and they
are that the "matter" referred to in the notice 1s based on
non-existent facts. I do not need to deal separately with this
ground.
Ground (5)
This ground was based on the fact that s.155 should be
read so that the Chairman had no power to issue a notice under
24.
that section unless he had reason to believe that the person to
whom the notice was issued was capable of furnishing the precise
information requested and not merely some relevant information.
As with the third ground, counsel for the applicant accepted that
this submission was contrary to what had been decided by Northrop
J. in Davenport v. T.P.C., supra, at pp. 5-11 and counsel merely
made the formal submission that the view of Northrop J. was not
correct. I accept his invitation to treat this as a formal
submission only.
It was common ground that 1f I held that the notice was
bad I should not attempt to consider whether any part of it was a
valid exercise of power.
For the reasons I have stated in relation to the
contravention alleged in relation to "orange juice drink and
erange juice drink concentrate" I consider that the notice is
invalid and I declare that the applicant is not obliged to comply
with it.
I agreed to hear any submissions concerning cnsts and
the parties may communicate with ny associate to fix a date for
those submissions to be made. I reserve the question of costs.
I certify that this and tre Maman three "2 3)
preceding sages are a true copy of the
Reasons ror Judgment herein of nis Honour
Mr Justice Prank.
(pret gr - Lon .
Assotiate
Dated. 22 CO Chey IGF 3.