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Australian Communications and Media Authority v Mobilegate Ltd A Company Incorporated in Hong Kong [2009] FCA 539 (22 May 2009)
Last Updated: 25 May 2009
FEDERAL COURT OF AUSTRALIA
Australian Communications and Media Authority v Mobilegate
Ltd A Company Incorporated in Hong Kong [2009] FCA 539
COMMUNICATIONS LAW – alleged sending of unsolicited commercial
electronic messages – jurisdiction of Federal Court to issue others and
accept
undertakings – (CTH) Spam Act 2003 ss 16, 32, 33, 36 – (CTH)
Trade Practices Act 1974 ss 52, 80, 80(6)
TRADE PRACTICES – undertakings offered to Federal Court of
Australia – whether ACMA obliged to provide the Court with an undertaking
as to damages – whether failure to provide Court with an undertaking fatal
to ACMA’s claim for interlocutory relief –
held absence of
undertaking not fatal to claim – (CTH) Judiciary Act 1903 s 64, (CTH) Spam
Act ss 32, 33, 36
TRADE PRACTICES – enforcement and remedies – declarations
– injunctions – whether Court has power under s 80 of Trade
Practices Act 1974 to grant interlocutory injunction prohibiting what would
otherwise be lawful activity – nature of power to grant injunction
“in such terms as the Court determines to be appropriate” –
need for nexus between proven contravention of Pt V of the Trade Practices Act
and the prohibition embodied in the injunction – held Respondents’
undertaking meets the case for interlocutory injunctive
relief sought by
ACMA
Australian Communications and Media Authority Act 2005 (Cth) ss 6,
8(1)
Judiciary Act 1903 (Cth) s 64
Spam Act 2003 (Cth) ss
16, 26, 32, 33, 36
Trade Practices Act 1974 (Cth) ss 52, 80
Australian Broadcasting Corporation v O’Neill (20060 227 CLR
applied
Australian Securities and Investments Commission v ACN 102 556 098
Pty Ltd (2003) 48 ACSR 350 followed
Brigginshaw v Brigginshaw
[1938] HCA 34; (1938) 60 CLR 336 cited
Director of Public Prosecutions (WA) v Mansfield
& Ors [2006] WASC 255 followed
F Hoffman – la roche & Co
AG & Ors v Secretary of State for Trade and Industry [1975] AC 295
followed
Foster v Australian Competition and Consumer Commissioner
[2006] FCAFC 21; (2006) 149 FCR 135 followed
Thomson Australian Holdings Pty Ltd v Trade
Practices Commission [1981] HCA 48; (1980-1981) 148 CLR 150 applied
AUSTRALIAN COMMUNICATIONS AND MEDIA AUTHORITY v
MOBILEGATE LTD A COMPANY INCORPORATED IN HONG KONG, WINNING BID PTY LTD ACN 121
026
793, JOBSPY PTY LTD ACN 112 801 073, SIMON ANTHONY OWEN, TAREK ANDREAS
SALCEDO, SCOTT MARK MOLES, GLENN CHRISTOPHER MAUGHAN and SCOTT
GREGORY
PHILLIPS
QUD426 of 2008
LOGAN J
22 MAY 2009
BRISBANE
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IN THE FEDERAL COURT OF AUSTRALIA
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QUEENSLAND DISTRICT REGISTRY
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AUSTRALIAN COMMUNICATIONS AND MEDIA
AUTHORITYApplicant
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AND:
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MOBILEGATE LTD A COMPANY
INCORPORATED IN HONG KONGFirst Respondent
WINNING BID PTY LTD ACN 121 026 793 Second
Respondent
JOBSPY PTY LTD ACN 112 801 073 Third
Respondent
SIMON ANTHONY OWEN Fourth Respondent
TAREK ANDREAS SALCEDO Fifth Respondent
SCOTT MARK MOLES Sixth Respondent
GLENN CHRISTOPHER MAUGHAN Seventh Respondent
SCOTT GREGORY PHILLIPS Eighth Respondent
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DATE OF ORDER:
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WHERE MADE:
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Upon the Second, Fourth, Fifth and Seventh Respondents by their Counsel
giving the undertakings in Exhibit 1, the Court orders that:
- The
Second Respondent remove or otherwise deactivate, or cause to be removed or
deactivated, any fictitious profiles on dating websites
or social networking
websites it has registered or otherwise placed on those websites, whether by
itself, its servants or agents.
Note: Settlement and entry of orders is dealt with in Order 36 of
the Federal Court Rules.
The text of entered orders can be located using
eSearch on the Court’s website.
IN THE FEDERAL COURT OF AUSTRALIA
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QUEENSLAND DISTRICT REGISTRY
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QUD426 of 2008
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BETWEEN:
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AUSTRALIAN COMMUNICATIONS AND MEDIA
AUTHORITY Applicant
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AND:
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MOBILEGATE LTD A COMPANY INCORPORATED IN HONG
KONG First Respondent
WINNING BID PTY LTD ACN 121 026 793 Second
Respondent
JOBSPY PTY LTD ACN 112 801 073 Third
Respondent
SIMON ANTHONY OWEN Fourth Respondent
TAREK ANDREAS SALCEDO Fifth Respondent
SCOTT MARK MOLES Sixth Respondent
GLENN CHRISTOPHER MAUGHAN Seventh Respondent
SCOTT GREGORY PHILLIPS Eighth Respondent
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JUDGE:
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LOGAN J
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DATE:
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22 MAY 2009
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PLACE:
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BRISBANE
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REASONS FOR JUDGMENT
- The
use of trickery to prey for reward upon the lusts or emotional vulnerabilities
of others is hardly a vice confined to modern
times. What modern times do
offer, for those disposed to such a vice, are new means of prey, the internet
and the mobile telephone.
- The
Australian Communications and Media Authority (ACMA) submits that, in one or the
other of the ways it alleges in its statement
of claim, the First to Seventh
Respondents in this proceeding have engaged in or have been a party to conduct
which might be thought
to amount to a vice of the kind described but which in
any event is alleged to contravene s 16(1) of the Spam Act 2003 (Cth)
(Spam Act) and also s 52 of the Trade Practices Act 1974 (Cth)
(TPA).
- The
prohibition for which s 52 of the TPA provides against a corporation engaging in
misleading or deceptive conduct in trade or commerce is well known. Perhaps
less well known, at least until now, but no less important, is the very
particular prohibition found in s 16 of the Spam Act against the sending of
unsolicited commercial electronic messages. Materially, s 16(1) of the Spam Act
provides:
16(1) A person must not send, or cause to be sent, a commercial electronic
message that:
(a) has an Australian link; and
(b) is not a designated commercial electronic message.
Section 16 also provides for a number of justifications only one which it is
presently necessary to note – consent: s 16(2) of the Spam Act.
- ACMA
is a public authority of the Commonwealth established by s 6 of the
Australian Communications and Media Authority Act 2005 (Cth). Its
telecommunications related functions are set out in s 8(1) of that Act.
Materially, they include:
8(1) The ACMA's telecommunications functions are as follows:
(a) to regulate telecommunications in accordance with the
Telecommunications Act 1997 and the Telecommunications (Consumer Protection and
Service Standards) Act 1999 ;
(b) to advise and assist the telecommunications industry;
(c) to report to and advise the Minister in relation to the
telecommunications industry;
(d) to report to and advise the Minister in relation to matters affecting
consumers, or proposed consumers, of carriage services;
(e) to manage Australia's input into the setting of international standards
for telecommunications (except so far as Standards Australia
International
Limited is responsible for managing that input);
(f) to monitor, and report to the Minister on, all significant matters
relating to the licensing of carriers under the Telecommunications Act 1997 ;
(g) to make available to the public information about matters relating to the
telecommunications industry;
(h) to conduct public educational programs about matters relating to the
telecommunications industry;
(i) to give advice to the public about matters relating to the
telecommunications industry;
(j) such other functions as are conferred on the ACMA by or under:
(i) the Spam Act 2003 ; or
(ia) the Do Not Call Register Act 2006 ; or
(ii) the Telecommunications Act 1997 ; or
(iii) the Telecommunications (Carrier Licence Charges) Act 1997 ; or
(iv) the Telecommunications (Consumer Protection and Service Standards) Act
1999 (other than subsection 158F(1)); or
(iva) chapter 4 or 5 of the Telecommunications (Interception and Access)
Act 1979 ; or
(v) the Telecommunications (Numbering Charges) Act 1997 ; or
(vi) part XIC of the Trade Practices Act 1974 ;
(k) to monitor, and to report to the Minister on, the operation of each Act
specified in paragraph (j), to the extent it is so
specified;
(l) to do anything incidental to or conducive to the performance of any of
the above functions.
- One
of the functions conferred on ACMA by the Spam Act is the bringing of
proceedings for civil penalties and injunctive relief in respect of
contraventions of that Act. Section 26 of the Spam Act provides for the
institution of civil penalty proceedings. As to injunctive relief, final
injunctive relief may be granted by this
Court pursuant to s 32 of the Spam Act.
Section 33 of the Spam Act makes separate provision for the granting by this
Court of interim injunctions. Those two sections provide:
Section 32
Restraining injunctions
(1) If a person has engaged, is engaging or is proposing to engage, in any
conduct in contravention of a civil penalty provision,
the Federal Court may, on
the application of the ACMA, grant an injunction:
(a) restraining the person from engaging in the conduct; and
(b) if, in the Court’s opinion, it is desirable to do
so—requiring the person to do something.
Performance injunctions
(2) If:
(a) a person has refused or failed, or is refusing or
failing, or is proposing to refuse or fail, to do an act or thing; and
(b) the refusal or failure was, is or would be a contravention of a civil
penalty provision;
the Federal Court may, on the application of the ACMA, grant an injunction
requiring the person to do that act or thing.
Section 33
Interim injunctions
Grant of interim injunction
(1) If an application is made to the Federal Court for an injunction under
section 32, the Court may, before considering the application, grant an
interim injunction restraining a person from engaging in conduct of
a kind
referred to in that section.
No undertakings as to damages
(2) The Federal Court is not to require an applicant for an injunction under
section 32, as a condition of granting an interim injunction, to give any
undertakings as to damages
- Section
36 of the Spam Act should also be noted and is as follows:
Section 36 Other powers of the Federal Court unaffected
The powers conferred on the Federal Court under this Part are in addition to,
and not instead of, any other powers of the Court,
whether conferred by this Act
or otherwise
- On
the strength of the contraventions which it alleges, ACMA seeks both the
imposition of civil penalties and the granting of final
injunctive relief in
these proceedings. To support its claim for final injunctive relief, ACMA also
calls in aid the jurisdiction
conferred on the Court by s 80 of the TPA.
- At
the present stage of these proceedings, the question is whether and in what
terms interlocutory injunctive relief should be granted,
or whether undertakings
which have been proffered by particular Respondents should be regarded as a
sufficient answer to the claim
for interlocutory injunctive relief. So far as
some of the Respondents are concerned, no controversy attends that question.
That
is because ACMA does not seek against those Respondents to press its claim
for interlocutory injunctive relief having regard to the
terms of the
undertaking they offer. That is not so in respect of the following
Respondents:
- Winning Bid Pty
Ltd (Winning - the Second Respondent);
- Mr SA Owen (the
Fourth Respondent);
- Mr TA Salcedo
(the Fifth Respondent); and
- Mr GC Maughan
(the Seventh Respondent).
I shall refer collectively to
these Respondents as the “remaining Respondents”.
- I
annex to these reasons the terms in which the remaining Respondents have,
without admission as to liability to civil penalty, proffered
undertakings to
the Court, which undertakings became Exhibit 1.
- For
its part, ACMA has submitted that only an undertaking cast in rather wider terms
would sufficiently meet its claim for interlocutory
injunctive relief. I also
annex to these reasons a copy of what ACMA submits would be a sufficient
undertaking. The remaining Respondents
are not prepared to give an undertaking
in these terms. ACMA therefore seeks interlocutory injunctive relief in terms
of the rebuffed
undertaking.
- At
the risk of overgeneralising what is a highly detailed pleading supported by
extensive affidavit evidence, ACMA alleges:
(a) Winning and
Mobilegate sent, are sending, and are likely to continue to send unsolicited
commercial electronic messages in contravention
of s16(1) of the Spam Act and
that Jobspy, Simon Owen, Tarek Salcedo, Scott Moles and Glenn Maughan were
knowingly concerned in the sending of those unsolicited
messages;
(b) the modus operandi of IMP, Winning and Mobilegate in the sending of the
unsolicited messages involved the deliberate creation,
registration and use of
fabricated profiles on dating websites for the purposes of soliciting, by
deception, mobile phone numbers
from members of the dating websites for use in
the business constituted by the supply of the sale divert, singles club and
maybemeet
services;
(c) Winning and Mobilegate, with the knowledge involvement of the individual
respondents, have consistently failed to address complaints
about the deceptive
use of the fabricated profiles and the lack of consent for the sending of the
unsolicited messages and have sought
to conceal from the aggregator, dealing
with customer, carriage service provider and TIO complaints, the true nature of
the respective
sms businesses.
- ACMA
submits that, in order effectively to protect the public from ongoing conduct of
the kind alleged in its statement of claim,
broad injunctive relief even at an
interlocutory stage is required having regarding to what it alleges is an
interchangeable use,
made by the individuals of the Respondents, of different
corporate entities and the inability of those corporate entities to provide
documentation of the acts performed in the course of their SMS businesses.
- The
principles which inform whether or not to grant interlocutory injunctive relief
are not in doubt. They are as stated by Gummow
and Hayne JJ in Australian
Broadcasting Corporation v O’Neill (2006) 227 CLR 571 at 81-82,
[65]:
- The
relevant principles in Australia are those explained in Beecham Group Ltd v
Bristol Laboratories Pty Ltd. This Court (Kitto, Taylor,
Menzies and Owen JJ)
said that on such applications the court addresses itself to two main inquiries
and continued:
“The first is whether the plaintiff had made out a
prima facie case, in the sense that if the evidence remains as it is
there is a probability that at the trial of the action the plaintiff will
be
held entitled to relief ... The second inquiry is ... whether the inconvenience
or injury which the plaintiff would be likely
to suffer if an injunction were
refused outweighs or is outweighed by the injury which the defendant would
suffer if an injunction
were granted.”
By using the phrase “prima facie case”, their Honours did not
mean that the plaintiff must show that it is more probable
than not that at
trial the plaintiff will succeed likelihood of success to justify in the
circumstances the preservation of the status
quo pending the trial. That this
was the sense in which the Court was referring to the notion of a prima facie
case is apparent
from an observation to that effect made by Kitto J in the
course of argument. With reference to the first inquiry, the Court continued,
in a statement of central importance for this appeal:
“How strong the probability needs to be depends, no doubt, upon the
nature of the rights [the plaintiff] asserts and the practical
consequences
likely to flow from the order he seeks.”
[footnotes omitted].
- Given
that a question arises as to whether or not undertakings should be accepted,
reference should also be made to the guidance
offered by Gibbs CJ, Stephen,
Mason and Wilson JJ in their joint judgment in Thomson Australian Holdings
Pty Ltd v Trade Practices Commission [1981] HCA 48; (1980-1981) 148 CLR 150 at
164-165:
An undertaking to the court is given in lieu of an injunction and, if broken, is
treated as the equivalent of an order for the purpose
of enforcement; it may
therefore be enforced in the same manner as an injunction – Milburn v
Newton Colliery Ltd; London and
Birmingham Railway Co v Grand Junction Canal Co;
In re National Federated Electrical Association’s Agreement; Biba Ltd v
Stratford
Investments Ltd.
As an undertaking is given in lieu of an injunction and is enforceable in like
manner, the principles which govern the grant of an
injunction by a court must
guide it in deciding whether it should accept an undertaking. Limitations which
affect the court’s
jurisdiction or power to grant a final injunction must
be observed in the acceptance of an undertaking when it is offered as a
substitute
for a final injunction. The court cannot escape such limitations by
the expedient of accepting an undertaking in lieu of an injunction.
The court
cannot put itself in the position of enforcing conduct which it has no capacity
to command or compel. No doubt the Federal
Court has power to accept an
undertaking at an interlocutory stage when the undertaking is reasonably related
to the orderly procedure
of the Court or to the subject matter of the
litigation, ... even though it is not in a form which falls within s 80. But,
... this
does not justify the conclusion that the Court has power to accept an
undertaking by way of final disposition of the case when the
Court lacks power
to make a final order in that form and the effect of the undertaking is to
restrain conduct which the Court has
no power to restrain.
In general the court must, in deciding whether it will accept from a defendant
an undertaking to which the plaintiff takes no exception,
be guided by the
principles which apply to the making of a consent injunction
...
[footnotes omitted]
- The
remaining Respondents do not contest, for the present purposes, that ACMA has
demonstrated a prima facie case in the sense described in Australian
Broadcasting Corporation v O’Neill (2006) 224 CLR 571 in respect of
the allegations I have summarised above. They submit though that the
interlocutory relief sought
by ACMA goes beyond that which is reasonably
necessary in the circumstances pending trial. More particularly they
submit:
(a) ACMA offers no undertaking as to damages. They
acknowledge it is not required to do so insofar as it applies for injunctive
relief
under the Spam Act s 33. They note it has no similar protection insofar
as it relies on s 80 of the Trade Practices Act. Even insofar as ACMA cannot be
required to give an undertaking, they submit it is still a relevant
consideration that such protection
is absent;
(b) ACMA has substantially delayed in seeking relief. The substantial delay
was before the commencement of proceedings in late 2008.
It is apparent from
ACMA’s affidavit material that it has been investigating and has been in
possession of much of the information
on which it relies for some time. This
suggests, they submit that things are not a drastic as it now seeks to make
out;
(c) The interlocutory injunctive relief sought by ACMA is in essentially the
same form as the final injunctive relief which it seeks.
In many respects, its
effect will be final. No attempt has been made to confine the relief given its
interlocutory nature. As
a result, they submit some of the interlocutory relief
sought is not appropriate;
(d) The Court will be astute to ensure that orders are not made which have
the potential to constrain conduct which is not the subject
of complaint in the
Statement of Claim. Several of the orders sought, they submit, have that
potential, particularly so as to prohibit
businesses which might lawful be
conducted.
- I
turn now to a consideration of these particular submissions by the remaining
Respondents.
- Subsection
80(6) of the TPA is in similar terms to and perhaps provided the inspiration for
s 33(2) of the Spam Act (set out above).
However, those who enjoy the benefit
of s 80(6) are the Minister administering the TPA and the Australian Competition
and Consumer
Commission (ACCC). This case illustrates that the ACCC is not the
only Commonwealth public authority whose functions can embrace
the seeking of
interim injunctive relief under the TPA in the public interest. That omission
might well be though a law reform matter
by the Parliament.
- Be
this as it may, ACMA submits that, having regarding to its functions and the
purpose of the proceedings, the Court would not regard
its failure to offer the
usual undertaking as to damages as fatal to so much of its claim for
interlocutory injunctive relief as
depends upon the TPA.
- There
is no doubt that in suits brought by private litigants the offering of the usual
undertaking as to damages is normally expected
by the Court before interlocutory
injunctive relief is granted. The present form of the usual undertaking as to
damages is to be
found in Practice Note Number 3 issued by the Chief Justice on
14 June 1999.
- Section
64 of the Judiciary Act 1903 (Cth) provides, materially, “in any
suit to which the Commonwealth ... is a party, the rights of the parties shall
as nearly
as possible be the same, and judgment may be given and costs awarded
on either side, as in a suit between subject and subject”.
This to me
evidences an intention by the Parliament that, in a case which might truly be
assimilated with a suit between subject
and subject, a Commonwealth public
authority seeking an interlocutory injunction would ordinarily have to give the
usual undertaking
as to damages in order to secure such relief.
- This
though is not a proceeding which might be assimilated with a suit between
subject and subject. It is not ACMA’s status
as a Commonwealth public
authority which prevents that assimilation but rather the particular function
which it is discharging as
a public authority. That function is to seek the
enforcement of particular statutes in the public interest.
- Such
sentiments are evident in the speech of Lord Cross in F Hoffman – la
roche & Co AG & Ors v Secretary of State for Trade and Industry
[1975] AC 295 at 371:
“... if the Crown is taking proceedings under a statutory provision ...
the court in considering whether or not to make the
grant of an interim
injunction conditional of the giving of an undertaking in damages has to bear in
mind the interest which the
public – and in particular any section of it
which will benefit directly thereby – has in seeing that the law in
question
is enforced.
Authorities in this country which evidence
a similar position are Australian Securities and Investments Commission v ACN
102 556 098 Pty Ltd (2003) 48 ACSR 350 at 352 and Director of Public
Prosecutions (WA) v Mansfield & Ors [2006] WASC 225 at [14].
- I
do not therefore regard the absence of any undertaking as to damages by the ACMA
as fatal to its claim for interlocutory injunctive
relief insofar as that claim
relies upon the TPA. That is not to say that the absence of an undertaking as
to damages is irrelevant.
It is a fact to take into account, particularly
where, even at an interlocutory stage, the injunctive relief sought, would, if
granted,
preclude a respondent engaging in commercial activity beyond that which
is the subject of particular complaint in the proceedings.
- ACMA
submits that, in an appropriate case, this Court’s jurisdiction to grant
injunctive relief under s 80 of the TPA does extend to prohibiting a person from
engaging altogether in a particular field of commercial activity or industry
if
that is required to protect the public from conduct of the kind which
constituted the contravention of that Act found by the Court.
A Full Court of
this Court has held as much: Foster v Australian Competition and Consumer
Commission [2006] FCAFC 21; (2006) 149 FCR 135 at 149, [35].
- Foster
concerned final injunctive relief granted in circumstances which were
sufficiently serious to move the trial judge to impose what
he regarded as a
pecuniary penalty “at the high end of the scale”. Accepting though,
as I conceive I must, that s 80
confers such a power in respect of injunctive
relief, the facts would, in my opinion, have to be very singular and serious
indeed
and an applicant’s case overwhelming to warrant the granting of
relief of such breadth.
- There
is a basis, apparent from the affidavits of Mr SJ Weber, ACMA’s senior
investigator in this matter, for believing that,
either or each of Messrs
Salcedo and Maughan, on behalf of Mobilegate, have provided a provisioning form
for the provision of a premium
short code 19724253 for use in a subscription
service known as “Australian Singles On-line” and of an additional
short
code 19753787. ACMA, so Mr Weber deposes, has received and continues to
receive complaints from mobile phone users and dating website
operators in
relation to the short code 19724253. Mr Weber also deposes to the current use
of additional short codes allocated to
Mobilegate and Winning respectively,
apparently being used for the sending of messages of the kind referred to in the
statement of
claim.
- There
has been no affidavit material read on behalf of any of the remaining the
Respondents as to these matters. Their solicitor
has though deposed to the
conduct of a business by Winning known as “Winning Bid Reverse
Auction”. That business is
said to be independent from the activities the
subject of the present proceedings. ACMA does not submit otherwise. Indeed, it
seeks
to exclude from the purview of any interlocutory injunctive relief
anything which would prevent Winnings conducting that particular
business.
- It
is naturally a concern that, notwithstanding the institution of proceedings,
conduct which may contravene either or each of the
TPA and the Spam Act may be
continuing. I also note that some at least of the remaining Respondents have
earlier been the subject of proceedings in respect
of similar conduct to that
complained of. I remind myself though that a trial has yet to occur and the
remaining Respondents have
not therefore had the opportunity thus presented for
a comprehensive challenge whether by cross-examination or contradictory evidence
or both to ACMA’s case. It seems to me that the present state of the
evidence warrants the granting of interlocutory injunctive
relief but not of the
breadth proposed by ACMA.
- The
delay to which the remaining Respondents point is principally that which
preceded the institution of proceedings late last year.
I do not regard that as
a material basis for refusing interlocutory injunctive relief in this case.
Prima facie, Mr Weber’s affidavits show a continuum of conduct.
Further, it is quite apparent from his affidavits that there has necessarily
been both an intensive and extensive investigation in order to bring matters to
the point where they were fit for the institution
of proceedings in this Court.
It is to be remembered that, though a criminal standard of proof is not required
in order to find
contraventions which sound in civil penalties, nonetheless
inexact proofs and indirect references are not sufficient: Brigginshaw v
Brigginshaw [1938] HCA 34; (1938) 60 CLR 336.
- I
have already passed comment as to the breadth of the interlocutory injunctive
relief sought by ACMA. It is a serious thing at a
such stage of a proceeding to
interfere with the lawful conduct of a business or with the ability lawfully to
institute other businesses.
- Subject
to one qualification, I consider that the undertakings proffered by the
remaining Respondents sufficiently meet the case
for interlocutory injunctive
relief that ACMA has established. That qualification relates to Winning’s
undertaking only that
it will “use reasonable endeavours” to remove
or otherwise deactivate, or cause to be removed or deactivated, any fictitious
profiles on dating websites or social networking websites it has registered or
otherwise placed on those websites, whether by itself,
its servants or agents.
Winning seems, prima facie, to have control in respect of such websites.
ACMA, in my opinion, has established a case for an interlocutory order that
Winning
remove or deactivate the websites concerned. If it transpires, for some
unforeseen reason, that Winning cannot, notwithstanding
what it shows to be
endeavours which the Court regards as reasonable effect removal or deactivation,
it and its officers would not
be found guilty of a contempt. That though is to
anticipate. Further, what, prospectively, amounts to “reasonable
endeavours”
may be a subject upon which reasonable people might reasonably
differ. It is undesirable, in my opinion, that that degree of imprecision
attend either an interlocutory injunction or an undertaking which upon
acceptance will have the same practical effect.
- I
therefore propose to grant an interlocutory injunction in terms of paragraph 4
of the remaining Respondents’ undertakings
but with the qualification as
to reasonable endeavours removed. Subject to that, I regard the undertakings as
sufficiently meeting
the claim for interlocutory injunctive relief.
- I
should add that, contrary to ACMA’s submission, I do not regard
apprehended burdens of monitoring as a sufficient basis for
prohibiting the
remaining Respondents from engaging what would, absent a court order, otherwise
be lawful conduct. Those monitoring
difficulties strike me as no different to
those which attend ACMA’s operations in the day to day discharge of its
functions
in relation to contraventions of the Act. I do not regard it as
telling against the remaining Respondents that they have not adduced
evidence of
financial or other burdens which would attend their complying with interlocutory
orders of the kind sought by ACMA.
That there is no such evidence is relevant
in terms of an assessment of the balance of convenience but it is not the law
that ACMA
is entitled to interlocutory injunctive relief of any kind unless a
respondent proves otherwise.
- I
shall hear the parties in relation to directions for the further conduct of the
proceedings.
I certify that the preceding thirty-four (34)
numbered paragraphs are a true copy of the Reasons for Judgment herein of the
Honourable
Justice Logan.
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Associate:
Dated: 22 May 2009
Counsel for the
Applicant:
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Mr S Couper QC with Ms M Brennan
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Solicitor for the Applicant:
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Australian Government Solicitor
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Counsel for the First, Third and Sixth Respondents:
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Ms K Mellifont
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Solicitor for the First, Third and Sixth Respondents:
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Herbert Greer
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Counsel for the Second, Fourth, Fifth and Seventh Respondents:
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Mr D Clothier
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Solicitor for the Second, Fourth, Fifth and Seventh Respondents:
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Axis Legal
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