Australian Competition and Consumer Commission v Cornerstone Investment Aust Pty Ltd (in liq) (No 4) [2018] FCA 1408

FEDERAL COURT OF AUSTRALIA

Australian Competition and Consumer Commission v Cornerstone Investment Aust Pty Ltd (in liq) (No 4) [2018] FCA 1408 File number: NSD 1610 of 2015

Judge: GLEESON J

Date of judgment: 19 September 2018

Catchwords: CONSUMER LAW – alleged contraventions of ss 18 and 29 of the Australian Consumer Law – misleading or deceptive conduct in trade or commerce – false or misleading representations about goods or services – where respondent provided online vocational education services, engaging recruiters to market its services direct to consumers – whether recruiters made misleading or deceptive representations to specific consumers, including by silence – various representations that respondent's courses and laptops given as inducements to enrol were free, or that no liability was incurred until a consumer's income exceeded a threshold, or that respondent's courses were specifically for Aboriginals in contravention of ss 18 and 29 – attribution of recruiters' conduct to respondent CONSUMER LAW – alleged contraventions of ss 74, 76, 78 and 79 of the Australian Consumer Law – whether respondent, and respondent by its recruiters, contravened unsolicited consumer agreement provisions regarding specific consumers – disclosing purpose and identity – requirement to leave premises upon request – requirement to inform consumer of termination period – requirement to give documentation of agreement to consumer – contraventions found CONSUMER LAW – alleged contraventions of s 21 of the Australian Consumer Law – unconscionable conduct in trade or commerce in connection with supply of goods or services – whether respondent's marketing and enrolment system unconscionable – marketing and enrolment system unconscionable where insufficient training given to recruiters, consumers induced to enrol, unsolicited consumer agreements made without safeguards, minimal verification of consumers' literacy and numeracy, and targeted at disadvantaged consumers – whether recruiters acted unconscionably regarding specific consumers – recruiters acted unconscionably where they variously contravened ss 18 and 29 and the unsolicited consumer agreement provisions, manipulated or pressured consumers to enrol and assist in the enrolment of others within their communities, forged documents, enrolled consumers in multiple courses, and/or failed to assess consumers' suitability to enrol – attribution of recruiters' conduct to respondent