Federal Court of Australia
NOT FOR DISTRIBUTION
IN THE FEDERAL COURT OF AUSTRALIA WESTERN AUSTRALIA
DISTRICT REGISTRY GENERAL DIVISION
No. WA Gl of 1987
BETWEEN
TRADE PRACTICES COMMISSION
Applicant and
NORTON HOLDINGS PTY. LIMITED
First Respondent
and
EUAN ANGUS McKENZIE
Second Respondent
CORAM: TOOHEY J.
12 January 1987 : --
EX TEMPORE REASONS FOR JUDGMENT
Last week the Court granted an injunction to restrain the respondents from operating two accounts; one, an account with . the Commonwealth Trading Bank and the other, an account with the First Federal Building Society. The Trade Practices Commission seeks an extension of those injunctions, and also, by way of interlocutory relief, the granting of injunctions against the respondents restraining them from promoting a scheme which goes by various names, but can be conveniently referred to as the Metro
Marketing Scheme.
I am satisfied that the Commission has demonstrated not only that there is a serious question to be tried as to misleading or deceptive conduct on the part of the respondents but that there is a prima facie case. Mr. McKenzie, the second respondent, has
spoken at some length about the way in which the scheme works, but
nothing that he has said has really dealt with the essential complaint made by the Commission. This is that the advertisements placed by the respondents, and the documents which are sent to persons who respond to those advertisements, suggest activities to be carried out, which are quite different from those which the person responding learns when, and only when, he or she has paid
$40.
And clearly the amounts which a person may earn cannot be derived from filling envelopes, as the advertisement suggests; nor can they be earned merely by doing what is set out in the exhibits PJD 8 and PJD 9. It only becomes apparent when one has paid one's $40 that moneys can only be earned by others responding ina similar way. I am quite satisfied that the advertisements and the initial documents are misleading or deceptive and indeed that they almost certainly contravene other sections of the Trade
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