ACCC’s action against StoresOnline not settled

The Federal Court, Sydney, has held its decision in the legal proceedings against StoresOnline International Inc and StoresOnline Inc (collectively StoresOnline), by the Australian Competition and Consumer Commission (ACCC).

StoresOnline provided the ACCC with an undertaking under section 87B of the Trade Practices Act 1974 on 24 April 2006 following court action commenced by the ACCC on 1 June 2005.

From early October 2006, following the settlement of the earlier proceedings, StoresOnline contravened the ACCC’s undertakings by returning to Australia to run further business presentations.

An ACCC media representative told CRN that the matter was put in front of Justice Tamberlin in the Federal Court on the 09 October.

“Justice Tamberlin withheld judgement and has requested for more information from both parties on the matter,” said the media representative.

In the earlier case, the ACCC alleged that StoresOnline had engaged in misleading and deceptive conduct in the promotion and sale of its home business e-commerce software packages.

In the present proceedings, the ACCC alleges that StoresOnline contravened the 87B undertaking in various ways and on numerous occasions during the course of those further presentations.

One of the orders sought by the ACCC in the present proceedings is an interlocutory injunction restraining StoresOnline from conducting further presentations to sell and promote their home business e-commence software packages until the proceeding has been determined on a final basis.

The need for this order and the urgent nature of the proceedings generally arises as a result of advice received by the ACCC from StoresOnline that they are returning to Australia from 15 October to conduct further presentations.

CRN will keep readers informed about the outcome of the case.