MSY Tech Judgment Partially Appealed By ACCC

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The Australian Competition and Consumer Commission is appealing one aspect of the recent Federal Court orders made in the MSY Technology proceedings.Last month, online PC company, MSY Technology, who is a big customer of Intel and AMD as well as a reseller of ASUS, Acer and Lenovo notebooks, was slapped with a massive $203,500 fine by a judge sitting in the Federal Court in Sydney for misleading conduct, as well as more than $200,000 in legal costs, after falling foul of consumer laws in Australia.

On 5 May 2011 the ACCC filed a Notice of Appeal in relation to Justice Perram’s decision not to grant the declarations which had been sought by the ACCC and consented to by MSY.

The Federal Court imposed the penalties on MSY Technology and four of its related companies for making false and misleading consumer warranty representations, breaching sections 52 and 53(g) of the Trade Practices Act 1974 (now the Competition and Consumer Act 2010).

Justice Perram considered that he was bound by an earlier decision of the Full Federal Court which prevented him from granting declarations in circumstances where respondents to the proceeding consented to the making of those declarations.

The ACCC’s appeal is only in respect of this finding. Otherwise, the ACCC was successful in obtaining the court orders it had sought, namely, injunctions, civil penalties totalling $203,500, corrective notices, orders for the respondents to implement a trade practices compliance program and costs.

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