The Australian Competition and Consumer Commission has issued proceedings in the Federal Court in Melbourne against SMS Global Pty Ltd alleging contempt of court.The ACCC alleges that SMS Global breached an order made by Justice Murphy.
The order of the court required the company to publish and maintain for 90 days a corrective notice that would be accessed by clicking on an icon that prominently displayed in red text on a black background the words:
“False and Misleading Conduct by SMS Global Pty Ltd – Notice Ordered by the Federal Court of Australia”
The ACCC alleges that SMS Global did not prominently display the required click through icon text on its website.
A directions hearing has been set down in the Federal Court in Melbourne on 30 September 2011.
On 2 August 2011 the Federal Court had made orders and imposed penalties totalling $85,000 against SMS Global and its Director, Carl Krumins for misleading consumers by falsely representing that it was endorsed by the government.