Last week the Australian High Court upheld an appeal made by the Australian Competition and Consumer Commission who claimed that stories broadcast on Today Tonight, Channel Seven broadcasters engaged in misleading and deceptive conduct in contravention of section 52 of the Trade Practices Act 1974.
The High Court case was decided on whether Channel Seven was able to rely on a "publisher's defence" in relation to stories broadcast on Today Tonight in late 2003 and early 2004 about a property investment training program known as 'the Wildly Wealthy Women' (WWW).
The ACCC had alleged that in these broadcasts, Channel Seven broadcasters and the WWW principals made misleading representations in that one of the WWW principals was a millionaire and the other owned in excess of 60 properties when this was not the case.
The original case was heard by Justice Bennett in the NSW Supreme Court - the same judge who ruled in favour of Ice TV.
Kogan Technologies was recently slammed by the ACCC for misleading advertising in that they constantly advertised products as heavily discounted when in fact they had never been sold or advertised at the higher amount that the discounts were based on.
Kogan Technologies sells Kogan brand home entertainment products including the Kevin 37 TV. It had significant publicity when Channel 7's Today Tonight promoted it as a direct importer offering considerable savings by cutting out wholesalers.
"In light of the current decision consumers could have a right of claim against Kogan" said an ACCC official.