ACCC hits SMS Global with contempt of court proceedings

Stan Beer
Monday, 12 September 2011 13:26

IT Policy - Regulation

Just one month after Web based SMS messaging service provider SMS Global and its boss were fined $85,000 by the Federal Court of Australia for misleading customers, the Australian Competition and Consumer Commission has issued proceedings against the company in the Federal Court alleging contempt of court.

 

On 2 August 2011 the Federal Court had made orders and imposed penalties totalling $85,000 against SMS Global Pty Ltd and its Director, Carl Krumins for misleading consumers by falsely representing that it was endorsed by the government, and exaggerating its industry experience.

The judgment by Justice Murphy found that SMS Global displayed on its website the Australian Government ESA logo containing the words 'Australian Government Endorsed supplier' and also falsely represented in a brochure distributed at the 2010 CeBIT trade fair that it 'is a Government endorsed specialist'.

SMS Global was ordered to publish within 21 days a corrective notice on its website for a continuous 90 day period detailing the declarations made in respect of it and Mr Krumins.

However, the ACCC alleges that SMS Global breached the 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.