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Australian Competition and Consumer Commissionv Channel Seven Brisbane Pty Limited [2009] HCA 19 (30 April 2009)
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Australian Competition and Consumer Commissionv Channel Seven Brisbane Pty Limited [2009] HCA 19 (30 April 2009)
Last Updated: 30 April 2009
HIGH COURT OF AUSTRALIA
FRENCH CJ
GUMMOW, HAYNE, HEYDON AND KIEFEL JJ
AUSTRALIAN COMPETITION AND CONSUMER
COMMISSION
APPELLANT
AND
CHANNEL SEVEN BRISBANE PTY LIMITED & ORS
RESPONDENTS
Australian Competition and Consumer Commission v Channel Seven Brisbane Pty
Limited
[2009] HCA 19
30 April 2009
S506/2008
ORDER
1. Appeal allowed with costs.
- Set
aside the orders made by the Full Court of the Federal Court on 23 June
2008 and in their place order that the appeal to
that Court be dismissed with
costs.
On appeal from the Federal Court of Australia
Representation
S J Gageler SC, Solicitor-General of the Commonwealth of Australia with
S T White SC and J S Gleeson for the appellant
(instructed by
Australian Government Solicitor)
T E F Hughes QC with A S Bell SC and P Zappia for the respondents (instructed by
Freehills)
Notice: This copy of the Court's Reasons for Judgment is subject to formal
revision prior to publication in the Commonwealth Law
Reports.
CATCHWORDS
Australian Competition and Consumer Commission v
Channel Seven Brisbane Pty Limited
Trade Practices – Consumer protection – Misleading or deceptive
conduct – Where Trade Practices Act 1974 (Cth), s 65A provides
exemption from liability in respect of prescribed publication of matter by
prescribed information provider – Exception
to exemption in respect of
publication in connection with supply, possible supply or promotion of supply or
use of goods or services
– Application of exception where publication made
pursuant to contract, arrangement or understanding with person who supplies
goods or services "of that kind" – Meaning of phrase "of that kind" in
context of provision – Whether exception applies
only where contract,
arrangement or understanding relates to specific representations made in
publication of matter.
Statutory Interpretation – Use of demonstrative adjective "that" –
Determining referent of phrase "of that kind" –
Relevance of textual
proximity or sequential order – Whether alternative paragraphs in
sub-section to be read distributively
or as single sentence – Relevance of
statutory intention – Extent of assistance from extrinsic
materials.
Words and phrases – "advertisement", "contract, arrangement or
understanding", "goods or services of that kind".
Trade Practices Act 1974 (Cth), ss 52, 65A.
FRENCH CJ AND KIEFEL J
Introduction
- Section
52(1) of the Trade Practices Act 1974 (Cth) ("the TPA") provides:
"A corporation shall not, in trade or commerce, engage in conduct that is
misleading or deceptive or is likely to mislead or
deceive."
Actions brought under the section alleging misleading or deceptive news media
stories in the late 1970s and early
1980s[1] led to
the creation, in 1984, of a statutory exemption for "prescribed information
providers". The exemption was created by the
enactment of s 65A. An identical
provision limiting the scope of the prohibition on misleading or deceptive
conduct in relation to financial services
is to be found in the Australian
Securities and Investments Commission Act 2001
(Cth)[2].
Similar provisions appear in the Fair Trading Acts of the various States
and
Territories[3].
- The
present appeal concerns an exception to the exemption. The exception relates to
the publication of matter pursuant to a contract,
arrangement or understanding
between the party publishing the matter and a supplier of goods or services.
The proceedings which
have led to this appeal arise out of two episodes of the
Today Tonight program broadcast by the respondents in October 2003 and
January 2004. Each respondent is a licensed broadcaster, a member of the
Channel Seven network, and a subsidiary of Seven Network Ltd.
- The
broadcasts were about a business offering training for women in the arts of
property investment. It was promoted and conducted
by Dymphna Boholt and Sandra
Forster under the title "Wildly Wealthy Women Millionaire Mentoring Program".
According to the broadcasts,
Ms Boholt and Ms Forster were offering, for a fee
of almost $3,000 per person for a nine month program, to teach women how to
become
wealthy through investments in real estate.
- On
26 September 2005, the appellant, the Australian Competition and Consumer
Commission, commenced proceedings against the four respondents,
their holding
company Seven Network Ltd, the two women and a company called Universal
Prosperity Pty Ltd ("Universal") controlled
by Ms Forster. The appellant
alleged contraventions of s 52 of the TPA by all of them except Seven Network
Ltd[4]. It
claimed, inter alia, that, by their broadcasts about the Wildly Wealthy Women
mentoring program on Today Tonight, the respondents had made
representations about the benefits of the services offered by Ms Boholt and Ms
Forster and that those representations were
misleading or deceptive.
Declaratory and injunctive relief and non-punitive orders under s 86C(1) of
the TPA were sought.
- The
application came on for trial before Bennett J in the Federal Court. On 5
October 2007, her Honour gave judgment in favour of
the
appellant[5].
There had been no allegation and no evidence presented that the holding company,
Seven Network Ltd, had published any matter or
engaged in misleading or
deceptive conduct. Her Honour granted injunctive and declaratory relief
against the respondent broadcasters and ordered that they pay three quarters
of
the appellant's costs of the proceedings. Ms Boholt,
Ms Forster and Universal had previously agreed with the appellant on forms
of order
to dispose of the proceedings as against them. Ms Boholt and
Ms Forster provided affidavit evidence for use by the appellant
in its case
against the respondents.
- Bennett
J held that s 65A of the TPA did not provide a defence. The
respondents' conduct fell within an exception to the exemption from
liability provided by the section. This was on the basis that the broadcasts
had been made pursuant to an arrangement between the respondents and the two
women and related to services provided by the women.
- The
respondents appealed to the Full Court of the Federal Court. On
23 June 2008, the Full Court (Sundberg, Jacobson and Lander JJ) allowed
the
appeal and set aside the declaratory and injunctive relief awarded by
Bennett J[6]
on the basis that the exception to the exemption provided by s 65A did not
apply to the conduct of the respondents. The respondents' conduct
therefore fell within the exemption and their defence was made out.
- On
14 November 2008, the appellant was granted special leave to appeal to this
Court from that part of the judgment of the Full Court
which held that the
exemption from liability for contravention of s 52 of the TPA, contained in
s 65A(1) of that Act, applied to the conduct of the respondents.
- For
the reasons that follow, the appeal should be allowed. The exemption conferred
by s 65A does not apply to situations in
which a media outlet, pursuant to
an arrangement with a supplier of goods or services, publishes and, by
adoption or otherwise, makes representations of a misleading or
deceptive
character in relation to goods or services of that kind. That is the
present case.
Statutory framework
- Section
52 of the TPA is followed by a number of other provisions of Pt V of that
Act relating to false or misleading representations and conduct. The exemption
provided by s 65A applies to s 52 and those associated provisions.
Section 65A is in the following terms:
"(1) Nothing in section 52, 53, 53A, 55, 55A or 59 applies to a prescribed
publication of matter by a prescribed information provider, other than:
(a) a publication of matter in connection with:
(i) the supply or possible supply of goods or services;
(ii) the sale or grant, or possible sale or grant, of interests in land;
(iii) the promotion by any means of the supply or use of goods or services; or
(iv) the promotion by any means of the sale or grant of interests in land;
where:
(v) the goods or services were relevant goods or services, or the interests in
land were relevant interests in land, as the case
may be, in relation to the
prescribed information provider; or
(vi) the publication was made on behalf of, or pursuant to a contract,
arrangement or understanding with:
(A) a person who supplies goods or services of that kind, or who sells or
grants interests in land, being interests of that kind;
or
(B) a body corporate that is related to a body corporate that supplies goods
or services of that kind, or that sells or grants
interests in land, being
interests of that kind; or
(b) a publication of an advertisement.
(2) For the purposes of this section, a publication by a prescribed information
provider is a prescribed publication if:
(a) in any case – the publication was made by the prescribed information
provider in the course of carrying on a business
of providing information;
or
(b) in the case of a person who is a prescribed information provider by virtue
of paragraph (a), (b) or (c) of the definition of
prescribed information
provider in subsection (3) (whether or not the person is also a
prescribed information provider by virtue of another operation of that
definition)
– the publication was by way of a radio or television
broadcast by the prescribed information provider.
(3) In this section:
prescribed information provider means a person who carries on a
business of providing information and, without limiting the generality of the
foregoing, includes:
(a) the holder of a licence granted under the Broadcasting Services Act
1992; and
(aa) a person who is the provider of a broadcasting service under a class
licence under that Act; and
(ab) the holder of a licence continued in force by subsection 5(1) of the
Broadcasting Services (Transitional Provisions and Consequential Amendments)
Act 1992; and
(b) the Australian Broadcasting Corporation; and
(c) the Special Broadcasting Service Corporation.
relevant goods or services, in relation to a prescribed
information provider, means goods or services of a kind supplied by the
prescribed information provider
or, where the prescribed information provider is
a body corporate, by a body corporate that is related to the prescribed
information
provider.
relevant interests in land, in relation to a prescribed
information provider, means interests in land, being interests of a kind sold or
granted by the prescribed
information provider or, where the prescribed
information provider is a body corporate, by a body corporate that is related to
the
prescribed information provider."
The exception to the exemption with which this appeal is concerned is that
defined by s 65A(1)(a)(i) and (iii) read with
s 65A(1)(a)(vi)(A).
Factual background
- Between
September 2003 and March 2004, Rachael Bermingham carried on business offering
marketing services to other businesses, advising
them on how they could identify
prospective clients and get their products to those clients.
- In
October 2003, Ms Boholt and Ms Forster had set up a business which they were
operating or proposed to operate under the name "Wildly
Wealthy Women". Ms
Forster was, at the time, the sole director and shareholder of Universal.
Universal had a registered website
associated with the domain name
www.wildlywealthywomen.com.
- Ms
Bermingham was approached by Ms Forster in October 2003 asking her to arrange
for media exposure for the Wildly Wealthy Women
mentoring program. Ms
Bermingham would receive a commission for every woman that signed up to the
program. Ms Forster told her
that her main aim was to get a program like A
Current Affair, Today Tonight or Sunrise to cover the story
and ideally to run a series of stories following the women they mentored and
their journey over a nine month period.
Ms Bermingham agreed to represent
the business on that basis.
- Shortly
after 9 October 2003, Ms Bermingham contacted Mr Howard Gipps who was
then the producer of Today Tonight. At that time and at all material
times, each of the television companies broadcast a television program entitled
"Today Tonight" on each week night. They had a number of telephone
conversations between 9 October and 20 October 2003. During the conversations
Ms Bermingham set out a proposal for stories about the Wildly Wealthy Women
mentoring program to be broadcast on Today Tonight. The substance of her
proposal was contained in an email she sent to Mr Gipps on 20 October
2003. In that email she said:
"Based on our few talks, here is an outline of what we would like to be included
in the agreement;
. October – Initial story on the founders Sandy & Dypmhna [sic]
regarding their own stories ...
. November – A story on some women who have signed up for the
program ...
. February/March 2004 – A story on the women at their first Wildly
Wealthy Women Wicked Weekend ...
. April/May 2004 – Another story of the women buying property, at
auctions, renovating, walking the pavements searching for property
etc ...
. August 2004 – Who's leading the way – how many properties
have been acquired ...
. November 2004 – Graduation – who is our star Millionaire
– how their life has changed etc etc.
We love your suggestions Howard & would be happy if you were to confirm this
proposal. We will be finalising our agreements
with the TV Media tomorrow to
enable us to move onto our other press engagements ..."
- Mr
Gipps replied to the email on the same day saying, inter alia:
"all of that is fine and agreed ... looks like a total of 6
stories".
- Ms
Bermingham prepared a draft letter for Mr Gipps to sign as confirmation that
they would be doing six stories on Wildly Wealthy
Women along the lines set out
in the email. The letter concluded:
"Today Tonight confirm these stories will be done at the suggested periods you
have advised as above. The story content may change
to evolve with the success
& stories of the women participating."
A signed version of the letter was returned to Ms Bermingham, who sent a copy of
it to Ms Forster. Ms Bermingham then called Mr Gipps
and thanked him for
sending through the confirmation. She said they had been in talks with
A Current Affair but as he had confirmed that Today Tonight
would run a series of stories, the women wanted to go with him. Mr Gipps said
that Today Tonight would require exclusive rights to the story if that
were the case. Ms Bermingham replied:
"Yes, Today Tonight can have the exclusive to the story based on your proposal
until November 2004."
- After
receiving the signed copy Ms Bermingham did not offer rights to the story to any
other Australian television outlet. There
was no discussion between the parties
about any payment either from or to the Seven Network for the publicity given to
the Wildly
Wealthy Women program.
The misleading or deceptive representations
- The
transcripts of the two segments of the Today Tonight program broadcast in
October 2003 and January 2004 were set out in the judgment of the primary judge.
It is not necessary to refer
to them in detail here. The nature and content of
the broadcasts and the statements made by the compere and reporter in each of
them were sufficient, as the Full Court held, to support her Honour's finding
that a number of representations, which were misleading
or deceptive, were made
by the respondents. Three such representations, each based on a statement made
by the reporter, were found
to have arisen out of the first
broadcast[7].
They were[8]:
(i) Ms Boholt owned in excess of 60 properties.
(ii) Ms Forster had purchased over $1 million worth of property using none of
her own money.
(iii) Ms Forster was a millionaire.
- A
fourth representation, arriving out of a statement made by the program's
compere, was found to have been made by the respondents in the second
broadcast[9]. It
was[10]:
"the women had made millions of dollars through investing in property".
- The
respondents argued that, in the first broadcast, the compere had made a
disclaimer about the truth of the claims made by the
two women by
saying[11]:
"we'll see if the two ladies behind the program can live up to their promises
over the next 12 months".
And[12]:
"Too good to be true? Well we'll be following the scheme's progress to let you
know."
- The
trial judge
said[13]:
"Viewing the first episode as a whole, the Seven licensees embraced and
advanced the proposition that Ms Boholt and Ms Forster were
millionaires and had
achieved that status through investing in property. Those propositions were
adopted and stated as fact by the
reporter. In context, what was 'put up for
examination' by the compere was whether others could achieve millionaire status
by participation
in the mentoring program. There was no suggestion by the
compere, express or implicit, that the women's status as millionaires or
as
owners of property was questioned or would be examined or investigated in
subsequent programs. There was no suggestion that the
truth of those matters,
as asserted by the reporter, would be the subject of further inquiry or should
be the subject of such inquiry.
As a matter of overall impression, the scepticism injected by the compere does
not overcome the strength of the representations
made by the reporter. The
disclaimer did not detract from the Wildly Wealthy Women representations. When
the first episode is viewed
as a whole, the ordinary and reasonable viewer would
consider those representations to have been made by the Seven
licensees."
Her Honour also rejected an argument by the respondents that the compere had
effectively entered a disclaimer in the second
episode[14].
- Ms
Forster swore an affidavit in the proceedings setting out her assets. Her
evidence was not challenged. As at 31 October 2003
her assets did not exceed
$65,000 before taking into account liabilities of at least $8,000. As at 30
January 2004, they did not
exceed $115,000 before taking into account
liabilities of at least $8,000. Ms Boholt swore an affidavit, also
unchallenged, in which
she said, inter alia, that as at 31 October 2003 she "did
not own over 60 properties". The primary judge found that each of the
four
representations made by the respondents was misleading and
deceptive[15].
- The
Full Court, in findings not under challenge in this appeal,
said[16]:
"We are not persuaded that there was not sufficient evidence for her Honour to
make the findings which she did in relation to the
Wildly Wealthy Women
representations. In our opinion, having regard to the words used by the
reporter in the first program and the words used by the
compere in the second
program, her Honour was entitled to find, notwithstanding the words which were
said to amount to disclaimer
in both programs, that the representations were
made by the appellants.
Having found that the representations were made, it is clear beyond doubt that
her Honour was entitled to find that the representations
were false and that,
subject to one other matter which we will now address, the conduct in making
those representations was misleading
or deceptive pursuant to s 52 of the
Act."
That "other matter" was the s 65A defence. The primary judge found that it
did not apply because the respondents' conduct fell
within the exception defined
by sub-pars (i), (iii) and (vi) of s 65A(1)(a). The Full Court found that
the exception to the
exemption did not apply. It did so on the basis that the
only goods or services covered by the exception were "relevant goods or
services", ie goods or services of a kind supplied by the prescribed information
provider itself.
Grounds of appeal
- The
grounds of appeal against the decision of the Full Court
are:
"2. The Full Court erred in holding that, by reason of the operation of section
65A(1) of the Trade Practices Act 1974, section 52 of that Act did not
apply to the conduct of the Respondents.
- The
Full Court erred in holding that the reference to 'goods or services of that
kind' in section 65A(1)(a)(vi)(A) was a reference to goods or services
of a kind supplied by the prescribed information provider as used in the
expression 'relevant goods or services' in section 65A(1)(a)(v) which, in
turn, is defined in section 65A(3).
- The
Full Court erred in failing to hold that, on the proper construction of section
65A(1)(a)(vi)(A) of the Trade Practices Act 1974, the reference to
'goods or services of that kind' was a reference to the goods or services
referred to in section 65A(1)(a)(i), being the goods or services the
subject matter of the publication referred to in
s 65A(1)(a)."
Notice of Contention
- The
respondents filed a notice of contention seeking to uphold the judgment of the
Full Court on the following ground:
"For the exception to the exemption contained in s 65A(1)(vi) of the
Trade Practices Act (1974) (Cth) to apply, the 'contract, arrangement
or understanding' 'pursuant to' which the subject publication was
made must be a 'contract, arrangement or understanding' to publish the
misleading or deceptive matter that resulted in the contravention of s 52; and,
as the Appellant concedes, there
was no such 'contract, arrangement or
understanding'."
The questions for decision on the s 65A defence
- It
was not in dispute before the primary judge nor in this Court that:
. Each of the respondents was a "prescribed information provider"
as defined in s 65A(3).
. The broadcasts were "prescribed publications" of matter as defined in
s 65A(2).
. The publications were of matter in connection with the supply or
possible supply of goods or services or promotion of that supply
within
s 65A(1)(a)(i) and (iii).
. The goods or services the subject of the publication were not "relevant
goods or services". On that basis the exception defined
by sub-pars (i) and
(iii), read with sub-par (v) of s 65A(1)(a), had no
application.
. The condition in s 65A(1)(a)(vi)(B) had no
application.
. It was not argued that the broadcasts constituted an advertisement.
There was therefore no contention that the exception defined
by s 65A(1)(b)
applied.
- The
following questions arise for decision in determining whether the contested
exception to the s 65A exemption applied to
the broadcasts in issue:
(i) Did the conduct of the respondents, found to be misleading or deceptive,
constitute a publication of matter in connection with
the supply or possible
supply of goods or services or the promotion by any means of the supply or use
of goods or
services[17]?
– The answer to that question is in the affirmative and was not in
dispute.
(ii) Was the publication made pursuant to a contract, arrangement or
understanding within the meaning of sub-par
(vi)[18]?
– This question is raised by the respondents' notice of
contention.
(iii) If "yes", was the contract, arrangement or understanding made with a
person who supplies goods or
services[19]?
– The answer to this question was in the affirmative and was not in
dispute. Ms Boholt and Ms Forster were supplying training
services.
- The
next two questions are the primary constructional questions upon which this
appeal turns:
(iv) Do the goods or services referred to in s 65A(1)(a)(vi) as "goods or
services of that kind" mean goods or services of the
kind the subject of the
publication referred to in s 65A(1)(a)(i) and (iii)? or
(v) Do they mean only goods or services of the same kind as the "relevant goods
or services" mentioned in s 65A(1)(a)(v)?
The first construction, proposed in question (iv), yields a wider exception to
the exemption than the second, proposed in question
(v). The first was
that adopted by the primary
judge[20]. The
second was that adopted by the Full
Court[21].
- If
the first construction be correct, then a prescribed information provider is not
protected by s 65A when publishing matter
in connection with the supply of
goods or services of any kind where the publication is made on behalf of, or
pursuant to a contract,
arrangement or understanding with, a person who supplies
goods or services of that kind.
- If
the second construction be correct, the prescribed information provider will be
protected in such a case unless the goods or services
are "relevant goods or
services", that is to say goods or services of a kind supplied by that
prescribed information provider or
a related body
corporate[22].
The construction of s 65A
- It
is not necessary to set out in detail the background to the enactment of
s 65A[23].
In order to understand the purpose of the provision it is useful to refer to a
passage from the Second Reading Speech for the Bill
which became the Statute
Law (Miscellaneous Provisions) Act (No 2) 1984 (Cth) by which s 65A was
introduced into the TPA. In the Second Reading Speech it was said, inter
alia[24]:
"The Government recognises the need to maintain a vigorous free press, as well
as an effective and enforceable Trade Practices Act. In doing so, the
Government recognises that, whilst the problem may have been highlighted by a
defamation action, similar considerations
apply in respect of action for
negligent mis-statement and actions for injurious falsehood. The Government
also recognises that
the difficulties in this area are experienced not only by
the main newspaper, magazine and television publishers, but also by a wide
range
of other people who provide information.
New section 65A will operate to exempt the media (and other persons who engage
in businesses of providing information) from the operation of those
provisions
of Division 1 of Part V of the Trade Practices Act which could inhibit
activities relating to the provision of news and other
information."
The exemption was limited and the relevant limit
was[25]:
"The exemption is not available, however, in respect of a publication of
information relating to goods, services or land of a kind
supplied by the
information provider, or relating to goods, services or land where the
publication is made pursuant to a contract,
arrangement or understanding with a
body corporate related to a body corporate that supplies such goods, services or
land. These
provisions ensure that information providers are not exempt from
the consumer protection provisions of the Trade Practices Act in respect of the
provision of information where they have what might be regarded as a commercial
interest in the content of the
information. In such cases, information
providers must take the same responsibility for the accuracy of information as
any other
person who publishes information in trade or commerce. This can
occur, for example, where a newspaper has agreed to publish a 'news'
item about
a product in exchange for the product supplier taking out paid advertising in
that publication."
- The
Explanatory Memorandum in relation to s 65A(1)(a) stated:
"Proposed paragraph 65A(1)(a) provides that the exemption does not operate in
relation to publication in connection with the supply
or promotion of relevant
interests in land, relevant goods or services or where publication is pursuant
to a contract, arrangement
or understanding with the supplier, or a related body
corporate, of lands, goods or services."
- The
extract from the Second Reading Speech defines the purpose of the exemption and
of the relevant exception to it. It is based
in part upon a misreading of
s 65A which would have the exception apply only in respect of goods or
services supplied by a body corporate or related body corporate.
The Minister
used the term "such goods or services" in a way that might be taken to have
referred to goods or services of a kind
supplied by the information provider or
to goods or services the subject of publication pursuant to a contract,
arrangement or understanding.
The extract from the Explanatory Memorandum moves
without explanation between a general reference to "relevant goods or services"
and "goods or services" generally. These features of the Second Reading Speech
and the Explanatory Memorandum mean that they are
of little assistance in the
construction of s 65A save to the extent that they identify its purpose.
- The
respondents supported the Full Court's construction of s 65A by reference
to textual and contextual considerations and the purpose of the section. In
substance the respondents' propositions
were:
(i) The only goods or services referred to as a class in s 65A are the "relevant
goods or services" in relation to a particular information provider. The "goods
or services of that kind" referred
to in s 65A(1)(a)(vi) can therefore only
refer to relevant goods or services in relation to a prescribed information
provider.
(ii) The proximity of the term "goods or services of that kind" in
s 65A(1)(a)(vi) to the term "relevant goods or services" in the immediately
preceding sub-paragraph suggests that the term in sub-par (vi) refers
to the
"relevant goods or services" in sub-par (v).
(iii) Sub-paragraphs (v) and (vi) are alternatives which should be read in their
context as referring to the same kind of goods or
services.
(iv) If the expression "goods or services of that kind" in sub-par (vi)
refers to any third person's goods or services the subject
of the publication,
the reference in s 65A(1)(b) to an "advertisement" would be otiose. Any
advertisement would meet the description in sub-par (vi) because it would
entail
the publication of matter in connection with any goods or services
pursuant to a contract, arrangement or understanding with a person
who supplies
those goods or services.
(v) The Minister's Second Reading Speech referred to publication being made
"pursuant to a contract, arrangement or understanding".
The Minister made it
plain through his use of the words "such goods, services or land" that the type
of goods covered by the sub-section
were goods of the kind supplied by the
prescribed information provider.
(vi) The Second Reading Speech indicates that the exemption was intended to have
a broad operation in relation to the media and other
information providers.
There is no basis for suggesting that the policy of promoting a "vigorous free
press" was to be subordinated
to consumer protection concerns.
(vii) The construction adopted by the primary judge would inhibit activities
relating to the provision of news and other information
by the media and other
information providers. It could inhibit media from entering into arrangements
or understandings including
non-commercial arrangements or understandings for
the purpose of publishing information about the supply of goods or
services.
- Notwithstanding
the above arguments the construction adopted by the primary judge and propounded
by the appellant is to be preferred
to that adopted by the Full Court and
propounded by the respondents.
- The
first constructional argument, that the reference to "goods or services of that
kind" in sub-par (vi) can only refer back
to "relevant goods or services"
in sub-par (v), depends upon "relevant goods or services" being the only
goods or services capable
of designation as a class and therefore as goods of a
particular kind. That premise is wrong. The designation "goods or services
of
that kind" used in sub-par (vi) can logically be applied to the goods or
services the subject of the published matter referred
to in sub-pars (i)
and (iii). Those sub-paragraphs define a class of goods or services by
reference to the fact that they were
the subject of the published matter.
- The
second and third construction arguments rely upon the proximity of
sub-pars (v) and (vi) and the fact that they are disjunctive.
These
considerations do not support the respondents' construction. At best they are
neutral. Sub-paragraphs (i) to (iv) define
classes of publication not covered
by the exemption if the conditions either of sub-pars (v) or (vi) are met.
These are two
different kinds of condition, the first being that the publication
concerns relevant goods or services, the second depending upon
the existence of
a relationship between the information provider and a supplier of the goods or
services the subject of the publications
and action pursuant to that
relationship.
- The
fourth argument was that the appellant's construction rendered the exception in
respect of advertisements in s 65A(1)(b) otiose. The argument is answered
by considering the way in which the exceptions are arranged in the section.
The exceptions to the s 65A exemption cover a hierarchy of related and
overlapping categories of publication which are entirely consistent with the
purpose of
the provision. Those categories were described, in broad terms, in
the submissions for the appellant as:
. Self promotion – s 65A(1)(a)(v).
. Third party promotion – s 65A(1)(a)(vi).
. Advertisement – s 65A(1)(b).
- There
are some categories of promotion of third party goods or services by a
broadcaster which would fall squarely within the concept
of an advertisement
within the meaning of par (b). But it is not to be supposed that that
exception, which was not relied upon
at any stage in these proceedings, would
cover the field of the promotion of third party goods and services. Nor is it
to be supposed
that the class of publication defined by the word "advertisement"
and the kind of third party promotion covered by sub-par (vi) are
mutually
exclusive. The ordinary English meaning of "advertisement" according to
the Australian Oxford Dictionary
is[26]:
"A public notice or announcement, especially one advertising goods or services
in newspapers, on posters, or in
broadcasts."
The Macquarie Dictionary includes, in its similar definition, "a
commercial film on
television"[27].
The word "advertorial" which appears to have entered ordinary usage is defined
in the Australian Oxford Dictionary as "an advertisement in the style of
editorial
comment"[28]
and in the Macquarie Dictionary
as[29]:
"a media piece that looks like a news or feature article but which is written
and paid for by an advertiser".
- The
interpretation of "advertisement" may conceivably cover some kinds of broadcast
which also fall within the description of advertorial.
Its relevant ordinary
meaning is nevertheless relatively narrow. It does not extend to every
publication of matter, pursuant to
some contract, arrangement or understanding,
in connection with the supply of goods or services.
- The
fifth argument relies upon the Minister's Second Reading Speech and his use of
the term "such goods [or] services" in it. Given
the infelicities referred to
earlier, neither the Second Reading Speech nor the Explanatory Memorandum are of
particular assistance
in choosing between competing constructions on textual
grounds. The assistance they do accord is largely related to an understanding
of the purpose of s 65A and its exceptions.
- The
purpose of the exemption in s 65A, which was the subject of the sixth and
seventh arguments made by the respondents, was to maintain a vigorous free press
as well
as to maintain an effective and enforceable TPA. That purpose is served
by releasing newspapers and electronic media proprietors,
inter alia, from
undesirable inhibitions on the provision, by them, of news, information, opinion
and comment. Consistently with
that purpose information providers are free as
part of the function of an independent free press to praise or criticise the
providers
of goods or services and the quality of what they provide. Where,
however, the information provider publishes matter in connection
with goods or
services which it itself provides, or publishes an advertisement for its own or
someone else's goods or services, the
rationale of maintaining a free and
vigorous press does not require its exemption from the prohibition of misleading
or deceptive
conduct. The same is true where the information provider
promotes the goods or services of a third party pursuant to a contract,
arrangement or understanding with that party. It would be
true also of
publications critical of goods or services provided by competitors of the
information provider or of a third party with
whom the information provider has
a contract, arrangement or understanding.
- The
rationale for limits upon the exemption should be understood in the light of
conditions that must be satisfied before an information
provider is liable in
respect of misleading or deceptive representations made by a third party and
published by the information provider.
The publication, by an information
provider, of third party statements about goods or services, does not, without
more, amount to
the adoption or making of those statements by the information
provider[30].
- Consistently
with the legislative purpose enunciated in the Second Reading Speech, there is a
clear rationale, derived from the purpose
of the TPA itself, for not confining
the exceptions to the exemption under s 65A to advertisements and to
publications about goods or services of a kind provided by the information
provider.
- There
will no doubt be factual circumstances in which the application of s 65A
will not be without difficulty. Nevertheless, text, context and purpose favour
the construction adopted by the primary judge, rather
than that adopted by the
Full Court.
- This
leaves for consideration the point raised by the notice of contention. It was
not argued by the respondents that there was
not a contract, arrangement or
understanding between them and the two women operating the Wildly Wealthy Women
Millionaire Mentoring
Program. The point in contention is whether the contract,
arrangement or understanding must relate to the specific representations
made in
the publication or whether it suffices that the publication is made pursuant to
the terms of the contract, arrangement or
understanding. The primary judge
found that it was sufficient that the arrangement extend only to the content of
the publication
in a general
sense[31]. The
respondents contended that this formulation was too nebulous. It would drive a
"coach and horse" through the exemption. They
argued that the contract,
arrangement or understanding must relate to the actual content of the
relevant publication or broadcast. The exception to the exemption would apply
where the
contract, arrangement or understanding covered the script or text of
the publication or broadcast and the script or text was found
to have been
misleading or deceptive.
- The
primary judge found against the construction advanced by the respondents and
made the following points:
. Section 65A(1)(a) is directed to the "publication of matter" and not
the publication of particular statements or representations.
. The publication may be made "pursuant to" a contract, arrangement or
understanding. This does not require that the contract, arrangement
or
understanding descend to the detail of the content of the
publication.
. The coverage by sub-par (vi) of publications made "on behalf of"
third party suppliers of goods or services also contra-indicates
a limitation on
the nature of the relevant contract, arrangement or understanding to the
particular content of the publication.
. While s 65A(1)(a) is concerned with the "matter" the subject of
the publication, sub-par (vi) concerns its source and not its
subject.
- An
arrangement or understanding ordinarily involves an element of reciprocal
commitment even though it may not be legally enforceable.
It involves more than
a mere hope or expectation that each party will act in accordance with its
terms[32]. It
is not necessary to consider the limits of the term here because there is no
dispute that the respondents did have an arrangement
or understanding with the
two women. The question is whether it was the kind of arrangement or
understanding with which sub-par (vi)
is concerned.
- The
collocation "on behalf of, or pursuant to a contract, arrangement or
understanding with ..." is directed to the relationship
between the publisher of
matter and the supplier of goods or services to which the published matter
relates. The respondents' construction
places a gloss and a limitation upon the
language of sub-par (vi) which Parliament did not see fit to place upon it.
The content
of the so-called "arrangement or understanding" is not defined save
that it must necessarily relate to the publication of matter
in connection with
goods or services. The relevant publication must be made "pursuant to" it.
This does not convey any requirement
that the particular text published must be
specified in the contract, arrangement or understanding. The respondents
contended that
the exception to the exemption as construed by the primary judge
would destroy the exemption. This was on the basis that anybody
who was
interviewed by television, radio or other media does so because they agree to do
so. So all voluntary interviewees are party
to a contract, arrangement or
understanding.
- This
was something of a "straw man" argument. Sub-paragraph (vi) is concerned with
contracts, arrangements or understandings between
information providers and the
suppliers of goods or services. The information provider that publishes matter
in connection with
the supply of goods or services, and engages in misleading or
deceptive conduct in so doing by the adoption or making of misrepresentations,
is the party affected by this exception. This case was well within the purposes
of the exception. Other cases may require consideration
of the range of
arrangements or understandings that fall within it.
- The
primary judge was correct in her construction.
Conclusion
- For
the preceding reasons the appeal should be allowed, the orders made by the Full
Court of the Federal Court set aside and the
orders made by the primary judge
restored. The respondents in this appeal should pay the appellant's costs of
the appeal in the
Full Court and in this Court.
- GUMMOW
J. The facts and the course of the litigation are explained in the reasons of
the Chief Justice and Kiefel J, which should
be read with what follows.
- Section 65A
of the Trade Practices Act 1974 (Cth) is so drawn as to compress within a
fairly short text numerous interactions between various integers or elements
specified
in the section. That interaction produces various combinations in
which those integers operate conjunctively and disjunctively.
When any
particular set of facts is said to engage the section it becomes necessary first
to identify which one or more of those
combinations is relied upon to attract
the section. If this step is taken with the present appeal, much of the
uncertainty said
to attend the application of s 65A in this case does not
appear.
- The
consequence is that the appellant ("the ACCC") should succeed, the appeal should
be allowed and consequential orders made as
proposed by the Chief Justice and
Kiefel J.
- Section 65A
excludes what otherwise could be contravention of the norms of conduct
proscribed by various provisions in Pt V, Div I of the Act. These are
ss 52, 53, 53A, 55, 55A and 59. The contraventions alleged by the
ACCC against the respondents ("Channel Seven") were of s 52. This
states:
"52 Misleading or deceptive conduct
(1) A corporation shall not, in trade or commerce, engage in conduct that is
misleading or deceptive or is likely to mislead or deceive.
(2) Nothing in the succeeding provisions of this Division shall be taken as
limiting by implication the generality of
subsection (1)."
The contraventions by Channel Seven were said to have occurred by the making of
two television broadcasts, being episodes of the
Today Tonight program
which went to air in October 2003 and January 2004. The central issue in this
Court is whether the exclusion of s 52 otherwise effected by s 65A did
not apply by reason of either of two operations of s 65A. Each of these,
by the use in them of the words "other than", is said by the ACCC to deny what
otherwise would be the exclusion by
s 65A of the application of s 52,
to the broadcasts by Channel Seven.
- Channel
Seven submitted that the construction of s 65A for which the ACCC contends
should be examined with particular caution because acceptance of it would
inhibit and not advance the
position of a free and vigorous press. However,
following the decision of Toohey J in Australian Ocean Line Pty Ltd v
West Australian Newspapers
Ltd[33], it
has become well established that, for the broadcasts in question here to give
rise to contraventions of s 52 by Channel Seven, it was necessary at least
for some "endorsement" or "adoption" of what was represented on the programs by
the relevant
third parties, Ms Forster and Ms Boholt. The point, with
particular reference to s 53 of the Act (which deals with certain false or
misleading representations), was made as follows by French J in Gardam v
George Wills & Co
Ltd[34]:
"The innocent carriage of a false representation from one person to another in
circumstances where the carrier is and is seen to
be a mere conduit, does not
involve him in making that representation. ... When, however, a representation
is conveyed in circumstances
in which the carrier would be regarded by the
relevant section of the public as adopting it, then he makes that
representation.
It will be a question of fact in each
case".
- The
evidence demonstrated that with respect to the alleged contraventions of
s 52 by Channel Seven, in relation to the status and achievements of
Ms Forster and Ms Boholt, there was at least the necessary
endorsement
or adoption. The transcript of the broadcast of 31 October 2003 contains
the following:
"REPORTER: Through shrewd investment in real estate the pair
[Ms Forster and Ms Boholt] have become millionaires, their
secrets to be revealed in a mentoring program called 'Wildly Wealthy Women'.
...
REPORTER: Sandy [Forster], a former surf wear designer is now a prosperity
coach teaching women how to think like millionaires.
In eight months she's
bought more than $1 million worth of property with no money whatsoever.
...
REPORTER: She [Ms Boholt] now owns more than 60 properties all around
Australia." (emphasis added)
The fact was, as affirmed in a declaration made by the primary judge, Ms Boholt
did not own in excess of 60 properties at the
time the representation was
made, Ms Forster was not a millionaire, and Ms Forster had not purchased over
$1 million worth of
property using none of her own money. The primary
judge also made a declaration with respect to the broadcast on 30 January
2004 to the effect that the statement in the transcript:
"COMPERE: The women you're about to meet have made millions of dollars
..."
represented that Ms Forster had made millions of dollars through investing in
property whereas in fact at this time she had not made
millions of dollars
through investing in property.
- Hence
the importance for Channel Seven to make out what it pleaded was the complete
answer to the allegations by the ACCC of contravention
of s 52, namely that
s 65A of the Act operated in favour of Channel Seven.
- It
is convenient now to set out the text of s 65A(1). The chapeau to
s 65A reads:
"Application of provisions of Division to prescribed information
providers."
The text of s 65A(1) states:
"(1) Nothing in section 52, 53, 53A, 55, 55A or 59 applies to a
prescribed publication of matter by a prescribed information provider, other
than:
(a) a publication of matter in connection with:
(i) the supply or possible supply of goods or services;
(ii) the sale or grant, or possible sale or grant, of interests in land;
(iii) the promotion by any means of the supply or use of goods or services;
or
(iv) the promotion by any means of the sale or grant of interests in land;
where:
(v) the goods or services were relevant goods or services, or the interests in
land were relevant interests in land, as the case
may be, in relation to the
prescribed information provider; or
(vi) the publication was made on behalf of, or pursuant to a contract,
arrangement or understanding with:
(A) a person who supplies goods or services of that kind, or who sells or
grants interests in land, being interests of that kind;
or
(B) a body corporate that is related to a body corporate that supplies goods
or services of that kind, or that sells or grants
interests in land, being
interests of that kind; or
(b) a publication of an advertisement." (emphasis
added)
- It
is apparent that par (a) of s 65A(1) has many different operations,
each of which triggers an exception to what otherwise is the relief given by the
opening words of
the sub-section from, in this case, s 52. This comes
about because par (a) operates such that either sub-pars (i), (ii),
(iii) or (iv) must be satisfied along with
either (v), (vi)(A) or (vi)(B). Once
the sub-section is disentangled and its numerous operations are separated the
operation of
the exceptions becomes clear. There are twelve exceptions produced
from the different combinations in par (a) of s 65A(1). For
convenience, these may be set out as follows:
(1) a publication of a matter in connection with the supply or possible supply
of goods or services where the goods or services were
relevant goods or services
in relation to the prescribed information provider; [(a)(i) + (v)]
(2) a publication of a matter in connection with the supply or possible
supply of goods or services where the publication was made on behalf of,
or pursuant to a contract, arrangement or understanding with a person who
supplies goods or service of that
kind; [(a)(i) + (vi)(A)]
(3) a publication of a matter in connection with the supply or possible supply
of goods or services where the publication was made
on behalf of, or pursuant to
a contract, arrangement or understanding with a body corporate that is a related
body corporate that
supplies goods or services of that kind; [(a)(i) +
(vi)(B)]
(4) a publication of a matter in connection with the sale or grant, or possible
sale or grant, of interests in land where the interests
in land were relevant
interests in land in relation to the prescribed information provider; [(a)(ii) +
(v)]
(5) a publication of a matter in connection with the sale or grant, or possible
sale or grant, of interests in land where the publication
was made on behalf of,
or pursuant to a contract, arrangement or understanding with a person who sells
or grants interests in land,
being interests of that kind; [(a)(ii) +
(vi)(A)]
(6) a publication of a matter in connection with the sale or grant, or possible
sale or grant, of interests in land where the publication
was made on behalf of,
or pursuant to a contract, arrangement or understanding with a body corporate
that is related to a body corporate
that sells or grants interests in land,
being interests of that kind; [(a)(ii) + (vi)(B)]
(7) a publication of a matter in connection with the promotion by any means of
the supply or use of goods or services where the goods
or services were relevant
goods or services in relation to the prescribed information provider; [(a)(iii)
+ (v)]
(8) a publication of a matter in connection with the promotion by any means
of the supply or use of goods or services where the publication
was made on
behalf of, or pursuant to a contract, arrangement or understanding with a person
who supplies goods or service of that
kind; [(a)(iii) + (vi)(A)]
(9) a publication of a matter in connection with the promotion by any means of
the supply or use of goods or services where the publication
was made on behalf
of, or pursuant to a contract, arrangement or understanding with a body
corporate that is a related body corporate
that supplies goods or services of
that kind; [(a)(iii) + (vi)(B)]
(10) a publication of a matter in connection with the promotion by any means of
the sale or grant of interests in land where the
interests in land were relevant
interests in land in relation to the prescribed information provider; [(a)(iv) +
(v)]
(11) a publication of a matter in connection with the promotion by any means of
the sale or grant of interests in land where the
publication was made on behalf
of, or pursuant to a contract, arrangement or understanding with a person who
sells or grants interests
in land, being interests of that kind; [(a)(iv) +
(vi)(A)]
(12) a publication of a matter in connection with the promotion by any means of
the sale or grant of interests in land where the
publication was made on behalf
of, or pursuant to a contract, arrangement or understanding with a body
corporate that is related
to a body corporate that sells or grants interests in
land, being interests of that kind; [(a)(iv) +
(vi)(B)]
This case is concerned with the exceptions numbered (2) and (8) which are
emphasised in the above list. Once the exceptions are
read in this way it
becomes apparent that, contrary to the construction of the Full Court, the
phrase "of that kind" refers to the
goods or services which are the subject of
the publication. This is consistent with the conclusion of the primary judge
and with
the case presented in this Court by the ACCC.
Textual considerations
- The
arguments put against this construction by Channel Seven are that it is
inconsistent with "textual considerations" and with the
purpose of the
legislation.
- In
their reasons, the Chief Justice and Kiefel J list the propositions
advanced by Channel
Seven[35].
They are numbered (i) to (vii). They may be briefly restated as follows:
(i) The only other kind of goods or services identified in s 65A(1) is the
"relevant goods or services" identified in sub-par (a)(v) and defined in
s 65A(3). Thus, the reference to "goods or services of that kind" in
sub-par (a)(vi)(A) must be a reference to those "relevant goods
or
services", not those of Ms Forster and Ms Boholt.
(ii) The textual proximity of the two phrases, "goods or services of that kind"
in sub-par (a)(vi) and "relevant goods or services"
in sub-par (a)(v), indicates
that the first of these two phrases identifies the second.
(iii) Sub-paragraphs (v) and (vi) are expressed disjunctively, but each refers
to the same kind of goods or services.
(iv) Full effect should be given to par (b) of s 65A(1), dealing with
the publication of an advertisement; par (b) would be otiose if the phrase
"goods or services of that kind" in
sub-par (a)(vi) identifies those of any
third person being the subject of the publication.
(v) The Second Reading Speech supports the construction advanced by Channel
Seven.
(vi) The promotion of a "vigorous free press" is not to be subordinated to the
concerns of consumer protection.
(vii) The ACCC construction, accepted by the primary judge, would inhibit
arrangements between information providers and third parties
for the publication
of information about the supply of goods or
services.
- Propositions
(i) to (iv) deal with what may be called "textual considerations".
Propositions (v) and (vi), which deal
with the Second Reading Speech,
are addressed below. Proposition (vii), the alleged impact upon the interests
of a free press has
been addressed earlier in these reasons.
- Proposition (i)
is incorrect. The goods and services in ss 65A(1)(a)(i) and (iii)
will naturally be of a kind. Furthermore, once the exceptions are disentangled
it becomes clear that the reference,
in s 65A(1)(a)(vi)(A), to "of that
kind" is a reference to the kind of goods or services in ss 65A(1)(a)(i)
or (iii).
- Channel
Seven submit, in proposition (ii), that the textual proximity of the
phrases "goods or services of that kind" and "relevant
goods or services"
indicates that they refer to the same goods or services. Further, they argue,
in proposition (iii), that
as sub-pars (a)(v) and (a)(vi) are
disjunctives they should be read as referring to the same kind of goods or
services.
If these propositions were to be accepted the Parliament could not,
as it has done with s 65A, effectively abbreviate a large number of
exceptions by listing the relevant integers as sets of disjunctives without
risking the
qualification of the terms of one integer by the terms of the other
integers.
- Reference
should be made to the definition of "relevant goods or services" in
s 65A(3). This reads:
"relevant goods or services, in relation to a prescribed
information provider, means goods or services of a kind supplied by the
prescribed information provider or, where the prescribed information provider is
a body corporate, by a body corporate
that is related to the prescribed
information provider." (emphasis added)
- During
the hearing before this Court the suggestion was made that the similarity
between the words "goods or services of that kind",
used in
s 65A(1)(a)(vi), and the words "goods or services of a kind", used in the
definition of "relevant goods or services" in s 65A(3), suggests that the
goods in s 65A(1)(a)(vi) are to be read as "relevant goods or services".
The defined expression appears in sub-par (v) not sub-par (vi), and
(v)
and (vi) are expressed disjunctively. The presence of the definition
in s 65A(3) supplies no textual support to break the link which, for this
appeal, appears between sub-par (vi) and sub-pars (i)
and (iii).
- The
fourth submission by Channel Seven should not be accepted. It is true that the
exceptions provided by ss 65A(1)(a)(vi)(A) and 65A(1)(b) overlap, upon the
construction accepted by the primary judge, but they also apply to discrete
publications. Further, as was
noted by French J in Bond v
Barry[36],
the limits of the wide application of s 65A are formed by the
exceptions provided by ss 65A(1)(a) and (b). The exceptions operate
to confine the application of the general exemption introduced by s 65A
rather than to exclude discrete publications from its application. Thus, the
exceptions do not necessarily operate discretely.
Purpose of the section
- Channel
Seven submits that the construction of Bennett J is inconsistent with the
intention of the legislature. This intention,
they submit, is "unusually clear"
from the Minister's Second Reading
Speech[37]:
"The exemption is not available, however, in respect of a publication of
information relating to goods, services or land of a kind
supplied by the
information provider, or relating to goods, services or land where the
publication is made pursuant to a contract,
arrangement or understanding with a
body corporate related to a body corporate that supplies such goods, services
or land. These provisions ensure that information providers are not exempt
from the consumer protection provisions of [the Act] in respect
of the provision
of information where they have what might be regarded as a commercial interest
in the content of the information."
(emphasis given by counsel for Channel
Seven)
- Channel
Seven submitted that it is clear from the use of the term "such goods", that the
type of goods covered by sub-par (a)(vi)
are goods of the kind supplied by
the prescribed information provider. Yet the Second Reading Speech is no more
than a summary of
the section and fails to deal directly with
sub-par (a)(vi)(A). Further, the replacement of the words "of that kind",
used
in the sub-paragraph, with the words "such goods" only repeats the
controversy at hand, namely, the identity of the goods in question.
There is no
indication that the Minister's reference to "such goods" is to goods of the kind
supplied by the prescribed information
provider rather than to those goods which
are the subject of the publication.
- The
Minister also states that the exceptions operate where the information provider
has "what might be regarded as a commercial interest"
in the content of the
information. This statement appears to be an attempt to summarise the effect of
the complex legal relationship
that exists between provisions
s 65A(1)(a)(i) to (vi), and s 65A(1)(b). The summary risks
over-simplification. Given this legal complexity, care should be taken in
looking to the Second Reading Speech
to answer intricate questions of
construction which arise in this case.
Notice of contention
- I
would agree with the reasons of the Chief Justice and Kiefel J with respect
to the Notice of Contention.
Orders
- I
agree with the orders proposed by the Chief Justice and Kiefel J.
- HAYNE J.
I agree with French CJ and Kiefel J that the appeal should be allowed
and consequential orders made in the
form proposed.
- The
disposition of the appeal turns principally upon the proper construction of
s 65A(1) of the Trade Practices Act 1974 (Cth). The text of
s 65A is set out in the joint reasons.
- Section 65A(1)
begins by providing that nothing in certain specified sections of the Act
"applies to a prescribed publication of matter by a prescribed
information
provider, other than" the several kinds of publication identified in
pars (a) and (b) of the sub-section. The immediate
question in the case
was whether the publication in issue was one of those excepted kinds of
publication. In particular, was there
"a publication of matter in connection
with ... the supply or possible supply ... [or] the promotion ... of the supply
... of ...
services" where "the publication was made on behalf of, or pursuant
to a contract, arrangement or understanding with ... a person
who supplies ...
services of that kind"?
- When
the question for consideration is identified in that way, there is no ambiguity
in the applicable provisions of s 65A(1). The contract arrangement or
understanding must be with a person who supplies services of the kind that are
the subject of the publication.
The expression "services of that kind"
points back to the services which are the subject of the publication.
- Section 65A(1)
is drafted as a single sentence of nearly 200 words. But that sentence is
divided and subdivided into paragraphs and sub-paragraphs
which, for the most
part, are to operate disjunctively. When account is taken of those
disjunctions, s 65A(1) can have more than a dozen distinct operations, even
if no distinction is drawn between the supply or possible supply of goods and
the supply or possible supply of services.
- When
construing s 65A(1) account must be taken of these disjunctive operations
of the provision. Ordinarily, the attribution intended by the demonstrative
adjective "that" is determined by proximity. But where, as here, there are
distinct operations of the provision, the relevant proximity
is identified by
consideration of so much of the sub-section as is relevant to the case at hand.
It is not identified by treating
the sub-section as a single sentence in which
"goods or services of that kind" always refers back to the goods or services
which
were identified in the immediately preceding paragraph of the
sub-section.
- In
this case, the words "of that kind", where they appear in
s 65A(1)(a)(vi)(A) (a person who supplies goods or services of that
kind) fell to be applied in a case in which it was alleged that there was a
publication of matter in connection with "the supply or possible
supply [or the
promotion of the supply] of goods or services". Read in that way there is no
ambiguity or difficulty in understanding
the "goods or services of that kind" as
referring back to the goods or services in connection with the supply, possible
supply, or
promotion of which there was a publication of matter.
- HEYDON
J. The Commission complained that s 52 of the Trade Practices Act
1974 (Cth) ("the Act") had been contravened by certain conduct of the
respondents (Channel Seven Brisbane Pty Ltd, Channel Seven Sydney Pty Ltd,
Channel
Seven Melbourne Pty Ltd and Channel Seven Perth Pty Ltd). The conduct
in question was broadcasting two episodes of a current affairs
television
programme known as Today Tonight. Those episodes reported on what was
called the "Wildly Wealthy Women Millionaire Mentoring Program" ("the Mentoring
Programme").
The Mentoring Programme envisaged the provision of instruction to
women over a nine month period on how to formulate and implement
successful
property investment strategies. In return for the provision of this service,
the participants would each pay $2,995.
- Dymphna
Boholt and Sandra Forster, who had conceived the idea of the Mentoring
Programme, asked Rachael Bermingham to organise publicity
for the Mentoring
Programme. In particular, on about 9 October 2003 Sandra Forster asked Rachael
Bermingham "to get a program like
... [Today Tonight] ... to cover the
story for us and ideally run a series of stories following the women we mentor
and their journey within the 9 months".
In due course, on 20 October 2003 the
Executive Producer of Today Tonight in Brisbane consented to broadcast
six "stories" on the Mentoring Programme. The first two of these "stories" were
the episodes
about which the Commission complains. They were broadcast on 31
October 2003 and 30 January 2004 respectively.
- The
Commission's contention that these episodes contravened s 52 was upheld by the
Federal Court of Australia (Bennett J). On the strength of an unchallenged
affidavit by Dymphna Boholt, the trial
judge held that in the first episode the
respondents made a misleading and deceptive representation that Dymphna Boholt
owned in
excess of 60
properties[38].
The trial judge also found, on the strength of an unchallenged affidavit by
Sandra Forster, that in the first episode the respondents
made misleading and
deceptive representations that she had purchased over $1 million worth of
property and was a millionaire. And
the trial judge found that in the second
episode the respondents made a misleading and deceptive representation that
Sandra Forster
had made millions investing in property. These conclusions are
not now in controversy, and no fresh demonstration of their validity
is now
called for. However, the learned Solicitor-General of the Commonwealth, who
appeared for the Commission, did take the Court
through parts of the broadcasts.
That process certainly revealed the broadcasts as tasteless, as vulgar, as
pandering to the basest
of human desires, and as highly likely to achieve both
popular and critical acclaim.
- What
is controversial is the trial judge's conclusion that the
respondents' conduct did not fall within an immunity from s 52 conferred by
s 65A. That conclusion led her to grant declaratory and injunctive relief.
The Full Federal Court (Sundberg, Jacobson and Lander JJ), however,
allowed an
appeal. They held that the trial judge's construction of s 65A was erroneous
and that it did afford the respondents immunity from s
52[39].
- The
Commission's appeal against the Full Court's orders should be dismissed with
costs for the following reasons.
The terms of s 65A
- Background.
Soon after s 52 was enacted in 1974, applicants began to contend not only that
untrue defamatory statements were actionable at common law by reason
of the tort
of defamation, but also that they attracted relief by way of damages under s 82
of the Act for contravention of s
52[40]. Some
applicants viewed reliance on s 52 and s 82 as offering attractions over
actions in defamation. One class comprised applicants who preferred non-jury
trial but who could only
sue in defamation in a jurisdiction which offered jury
trial. Another class comprised applicants who wished to bypass the numerous
common law and statutory defences available in defamation proceedings. Numerous
actions for damages under s 82 in relation to s 52 allegations have succeeded
even though the conduct in question was defamatory. Various arguments that
s 52 on its true construction did not permit this have been rejected, both
in the relatively distant past and quite recently. One is
that s 52 is to
be read down in the light of "the doctrine of freedom of speech, which
incorporates the freedom of the
press"[41].
Another is that s 52 is not to be construed so as to disrupt so well-established
and finely balanced a body of law as
defamation[42].
Yet another is that s 52 is not to be construed as applying where the
publication complained of, though defamatory, was true and in the public
interest[43].
- By
at least 1984 the availability of s 52/s 82 proceedings as a means of bypassing
the law of defamation had become
clear[44]. The
breadth of s 52 from this point of view caused "major newspaper proprietors" to
seek exemption from its operation, and from the operation of similar
sections in
Pt V Div 1 of the
Act[45]. In
late 1984, s 65A was enacted as a result.
- In
the spring of 1984 the government introduced a provision which became s 65A.
The Minister's Second Reading Speech
stated[46]:
"New section 65A will operate to exempt the media (and other persons who engage
in businesses of providing information) from the operation of those
provisions
of Division 1 of Part V of the [Act] which could inhibit activities relating to
the provision of news and other information."
- The
terms of s 65A. The structure of s 65A is as
follows[47].
The opening words of s 65A(1) grant an immunity by providing: "Nothing in
section 52, 53, 53A, 55, 55A or 59 applies to a prescribed publication of matter
by a prescribed information provider other than ...". Section 65A then creates
two groups of exceptions to that immunity, one in s 65A(1)(a) and one in s
65A(1)(b).
- It
is not in controversy that the respondents are "prescribed information
providers". That is because they hold licences under the
Broadcasting
Services Act 1992
(Cth)[48]. Nor
is it in controversy that the two episodes complained of were "prescribed
publications of matter". That is because they fell
within the meaning of
"prescribed publication" in s 65A(2)(b): the publication was "by way of a ...
television broadcast" by the respondents, who were prescribed information
providers by virtue
of par (a) of the definition of "prescribed information
provider", namely as holders of licences under the Broadcasting Services
Act[49].
- The
first group of exceptions to the immunity granted by the opening words of s
65A(1) is found in s 65A(1)(a). The second group of exceptions to the immunity
granted by the opening words of s 65A(1) comprises the publication of
advertisements: s 65A(1)(b). The Commission did not allege that this had
application in the present case.
The narrow range of controversy
- It
is clear that if the Commission is to establish that the respondents are outside
the immunity granted by the opening words of
s 65A(1), it must satisfy two
conditions. The first necessary condition is that one of sub-pars (i)-(iv)
applies to the respondents. The
second necessary condition is that one of
sub-pars (v) or (vi) also applies to the respondents.
- It
was common ground that the Commission established the first of these two
necessary conditions. The broadcast episodes were within
s 65A(1)(a)(i). That
is because they constituted a publication of matter in connection with the
supply or possible supply of services (namely the
services to be supplied by
Dymphna Boholt and Sandra Forster under the Mentoring Programme). The broadcast
episodes were also within
s 65A(1)(a)(iii). That is because they
constituted a publication of matter in connection with the promotion of the
supply of services (namely the
services to be supplied by Dymphna Boholt and
Sandra Forster under the Mentoring Programme).
- What
of the second of the two necessary conditions? It was common ground that the
Commission could not establish it by invoking
s 65A(1)(a)(v). That is
because the services were not supplied by the
respondents[50].
It is also common ground that the Commission could not establish it by invoking
s 65A(1)(a)(vi)(B). That is because no related body corporate was
involved.
- That
left s 65A(1)(a)(vi)(A) as the sole avenue by which the Commission could
establish the second necessary condition.
The reasoning of the trial judge
- The
respondents' submission was that s 65A(1)(a)(v) deprives a prescribed
information provider of immunity in relation to a publication of matter
promoting its own goods or services
or interests in land or (by reason of the
definition of "relevant goods or services" and "relevant interests in land")
those of a
related body corporate; that s 65A(1)(a)(vi) deprives it of immunity
in relation to a publication of matter on behalf of, or pursuant to a contract,
arrangement or understanding
with, a third party or a related body corporate who
supplies the prescribed information provider's goods or services or interests
in
land or those of a related body corporate; and that s 65A(1)(b) deprives a
prescribed information provider of immunity from publishing an advertisement for
the products of others. Inherent in
this submission was a submission that the
words in s 65A(1)(a)(vi) "of that kind" in relation to services referred not to
the services mentioned in s 65A(1)(a)(i) and (iii), but to those mentioned in s
65A(1)(a)(v) – the "relevant ... services", ie those supplied by the
prescribed information provider. The trial judge disagreed with that
submission[51].
The trial judge held that s 65A(1)(a)(vi)(A) was satisfied on the basis
that the respondents broadcast the episodes pursuant to their contract,
arrangement or understanding with
Dymphna Boholt and Sandra Forster made on 20
October
2003[52]. On
this basis Dymphna Boholt and Sandra Forster supplied services "of that kind"
because the trial judge considered that those
words referred to the services
mentioned in s 65A(1)(a)(i) or (iii).
The reasoning of the Full Court
- The
Full Court, on the other hand, preferred the construction advocated by the
respondents. The Full Court considered that s 65A(1)(a)(vi)(A) could only
have been satisfied if the respondents had broadcast the episodes pursuant to a
contract, arrangement or understanding
with a person who supplied "relevant
... services" of the type referred to in
s 65A(1)(a)(v)[53].
The submissions of the parties
- The
submissions of the parties each adopted the broad approach of defending those
aspects of the reasoning in the courts below which
favoured their interests,
with some elaboration. In general it is convenient to proceed by examining the
Commission's attacks on
the reasoning of the Full Court in the light of the
respondents' defence of it.
Unhelpful matters
- Before
that procedure is commenced, however, at the outset it must be said that there
were some materials referred to by the parties
which do not assist in construing
s 65A.
- Section
2. Section 2 of the Act provides:
"The object of this Act is to enhance the welfare of Australians through the
promotion of competition and fair trading and provision for consumer
protection."
The Commission submitted that this supported its construction. The submission
relied on s 15AA(1) of the Acts Interpretation Act 1901 (Cth) which
provides:
"In the interpretation of a provision of an Act, a construction that would
promote the purpose or object underlying the Act (whether that purpose or object
is expressly stated in
the Act or not) shall be preferred to a construction that
would not promote that purpose or object."
But the submission did not answer the question: how does one assess the purpose
or object underlying s 52 in relation to the purpose or object underlying
s 65A? Further, s 2 is a curious provision. If "Australians" in s 2 is
meant to denote "Australian citizens", so that the Act, unlike s 75(v) of the
Constitution, has as its object the benefiting of a narrower class than all the
persons present in Australia within the Queen's peace, s 2 has an application
which is narrow, discriminatory and unworkable. If, on the other hand,
"Australians" in s 2 is meant to refer to all persons present in Australia, s 2
ignores the extraterritorial reach of the Act, pursuant to s 5, on the many
persons who are Australian citizens or permanent or other residents of Australia
who are not at any particular moment
present in Australia. But, in any event,
the language of s 2 is far too broad and vague to assist in arriving at the
correct construction of a provision having the detailed and precise wording
of s
65A.
- Construction
to give the fullest relief. A similar appeal was made by the Commission to
a principle that Pt V of the Act should be construed "so as to give the fullest
relief which the fair meaning of its language will
allow"[54].
That principle may be accepted, but it casts no specific light on the question
of what the fair meaning of s 65A actually is.
-
Explanatory Memorandum. Contrary to a submission of the Commission, what
is said in the Explanatory Memorandum is far too compressed and brief to assist;
indeed, its terms do not suggest that its author had in mind the present
problem[55].
- The
Minister's Second Reading Speech. Both the Commission and the respondents
relied on the following statement by the Minister in the Second Reading
Speech[56]:
"The Government recognises the need to maintain a [vigorous] free press, as
well as an effective and enforceable
[Act]."
These words are too vague to indicate what the precise construction of the words
"of that kind" in s 65A(1)(a)(vi) is. Although the trial judge said that the
point at issue in these proceedings "is not directly addressed" in that
Speech[57],
when the Minister turned to discussion of the circumstances in which the
exemption conferred by the opening words of s 65A(1) did not exist, he said
this[58]:
"The exemption is not available, however, in respect of a publication of
information relating to goods, services or land of a kind
supplied by the
information provider, or relating to goods, services or land where the
publication is made pursuant to a contract,
arrangement or understanding with a
body corporate related to a body corporate that supplies such goods,
services or land." (emphasis added)
The first part of that sentence summarises s 65A(1)(a)(v). The second part of
that sentence refers to s 65A(1)(a)(vi)(A) and (B), and though it telescopes
those provisions, it affords room for the respondents to submit that it made
plain the meaning
of "goods or services of that kind" in s 65A(1)(a)(vi)(A) for
the purposes permitted by s 15AB(1) of the Acts Interpretation Act. They
submitted that the Minister's use of the words "such goods, services or land" in
referring to what he called "goods, services
or land of a kind supplied by the
information provider" reveals that the legislative words "of that kind" refer to
the kind comprised
by "relevant goods or services" and "relevant interests in
land". The Commission accepted that, if the quoted sentence were to be
construed in isolation, on one available construction it supported the
respondents. But the Commission submitted that it should
not be construed in
isolation. It relied on another part of the Second Reading
Speech[59].
The Minister
said[60]:
"These provisions ensure that information providers are not exempt from the
consumer protection provisions of the [Act] in respect
of the provision of
information where they have what might be regarded as a commercial interest in
the content of the information.
In such cases, information providers must take
the same responsibility for the accuracy of information as any other person who
publishes
information in trade or commerce. This can occur, for example, where
a newspaper has agreed to publish a 'news' item about a product
in exchange for
the product supplier taking out paid advertising in that
publication."
Although the Commission denied that the information provider was required to
have a "commercial interest in the content of the information"
– an issue
which can be put on one side – it did contend that the example given by
the Minister supported its construction.
However, publication of a "news" item
about a product in return for consideration is publication of an advertisement
about the product:
s 65A(1)(b) provides that the publication of an
advertisement is outside the immunity given by the opening words of s 65A(1).
If
the Minister was speaking of s 65A(1)(b), what he said is thus both correct
and not contradictory of the respondents' construction.
The Commission
submitted that there was no reason to suppose that the Minister was speaking of
s 65A(1)(b), and that he was actually
speaking of s 65A(1)(a).
- In
truth, these debates between the parties lead nowhere valuable. The Second
Reading Speech is quite inconclusive. The Speech
was directed to the Statute
Law (Miscellaneous Provisions) Bill (No 2) 1984. That Bill, when enacted,
amended, as its title hinted,
many disparate pieces of legislation apart from
the Act – 68 in all. It amended two parts of the Act. So far as s 65A is
concerned, the Speech offers a very brief account of a complex provision. The
version of the Second Reading Speech delivered
to the House of Representatives
contained a garbled and jumbled passage in relation to s
65A(1)(a)(vi)[61].
The Solicitor-General submitted that the standard of Second Reading Speeches in
1984 fell below that attained now. However that
may be, the perfunctory, rushed
and highly compressed treatment of s 65A gives no confidence that it can
usefully be relied on for the present purpose.
- Prior
authorities. The respondents relied on statements in various decisions of
the Federal Court of Australia which were consistent with their preferred
construction. The Commission was correct to submit that none of these decisions
concern the construction of s 65A(1)(a)(vi) – a submission which is
equally correct in relation to a case relied on by the trial
judge[62].
- Policy
and purposes. Both sides appealed to "policy" criteria and legislative
purposes, some of them supposedly "clear", but these were actually too uncertain
to be of assistance.
- Criminal
character of the conduct exempted by s 65A. The Commission briefly allied
itself with the proposition that issues to do with the construction of s 65A had
considerable significance, since there were many equivalents of it in other
Commonwealth legislation and in State and Territory
legislation modelled on Pt V
Div 1 of the Act. The significance is even wider than that. Although the
parties, correctly, did not develop any submissions around the following
point,
any conduct falling within s 65A, unless it is no more than a breach of s
52, is likely to be a criminal offence. One of the provisions from which s 65A
gives immunity is s 52. The prohibition in s 52 is not backed by a criminal
sanction. But the other provisions from which s 65A gives immunity – ss
53, 53A, 55, 55A and 59 – all have counterparts creating prohibitions
backed by criminal sanctions. They are found in Pt VC Div 2, and are ss 75AZC,
75AZD, 75AZH, 75AZI and 75AZM respectively. Contraventions of ss 75AZC, 75AZD,
75AZI and 75AZM are liable to a fine of 10,000 penalty units. Contraventions of
s 75AZH are liable to a fine of 2,000 penalty units. An immunity from
these provisions in the same terms as s 65A is provided by s 75AZR.
Defendants to charges that the criminal provisions have been contravened who
wish to rely on s 75AZR bear an evidential burden of establishing the
necessary facts, pursuant to s 13.3(3) of the Criminal Code (Cth).
Since the language of s 65A and s 75AZR is identical, whatever meaning is
given to s 65A must be given to s 75AZR.
If the immunity given by s 65A in
relation to attempts to obtain civil remedies for breaches of ss 53, 53A, 55,
55A or 59 is narrow,
it will be equally narrow in relation to attempts to get
criminal punishments for breaches of ss 75AZC, 75AZD, 75AZH, 75AZI
and
75AZM. However, the rule – perhaps a rule of last resort – that if
the language of a penal statute is ambiguous
or doubtful, the ambiguity or doubt
may be resolved in favour of the
subject[63],
has no application here. There is a controversy between the parties as to the
construction of s 65A, but the section is not so
ambiguous or doubtful as to
preclude, after analysis of the statutory language, selection between the
competing meanings.
- Thus,
however much it may be an unusually desperate tactic of last resort, there is no
alternative but to seek to ascertain the meaning
of s 65A by examining its
actual words, technical and unpalatable though they may be.
Textual considerations
- This
being an appeal against orders of the Full Court, it is desirable to begin by
considering what the reasoning was which the Full
Court saw as justifying the
orders, and by examining the Commission's complaints about that reasoning. The
key part of the Full
Court's reasoning begins with two interlinked
points[64]:
"[T]he expression [in s 65A(1)(a)(vi)(A)] is 'goods or
services of that kind'. That means there must be a reference earlier in the
section to goods or services of a kind. That follows from the use of the word
'that', which qualifies the kind of goods or services.
It must be referring to
some earlier mentioned goods or services.
... in the whole of s 65A there is only one reference to goods or services
of a kind, and that is in relation to the kind of
goods or services referred to
in the 'relevant goods or services'. There is no 'kind' of goods or services in
s 65A(1)(a)[(i)-(iv)]."
- The
Full Court also
said[65]:
"[P]lacita (v) and (vi) of s 65A(1)(a) are alternatives, only one of which
needs to be established to cause the exception to
operate upon the exemption. In
those circumstances, alternatives must be read contextually and, in particular,
in their context with
each other. In those circumstances, where both of the
placita refer to goods or services and when the alternative to the first
proposition
talks of goods or services of that kind, the alternative must be
addressing the kind of goods or services mentioned in the first
proposition."
- The
Commission criticised the reasoning set out in the first of these quotations
from the Full Court's reasons for judgment. It
submitted that the reasoning
"ignores the opening words of s 65A(1)(a)(vi) which make clear that the kind of
goods or services referred
to are those which constitute the subject matter of
the publication". This is not convincing. Although the goods or services
referred
to in s 65A(1)(a)(i) which are involved in a particular case, for
example, can no doubt be classified into part of a "kind", there
is no reference
in terms to any particular "kind". And the opening words of s 65A(1)(a)(vi) do
not refer in terms to any particular
"kind" of goods or services. The opening
words refer only to the "publication" of matter which has a connection with
"goods or services"
or "interests in land". It is true that this reference,
like the opening words of s 65A(1)(a)(v), which speak of "goods or services"
and
"interests in land", refers back to the "goods or services" mentioned in s
65A(1)(a)(i) and (iii), and the "interests in land"
mentioned in
s 65A(1)(a)(ii) and (iv). But the words in both phrases as used in
s 65A(1)(a)(i)-(iv) are entirely general
and unqualified: they refer to
any goods or services, and any interests in land. The process of cutting down
their generality,
and imposing some qualification on it, is a function served by
the language of s 65A(1)(a)(v)-(vi). That follows from the structure
of the
sub-paragraphs, and the use of the word "where" on its own line immediately
before those sub-paragraphs.
- That
linguistic structure also negates an attack which the Commission made on the
reasoning in the second quotation from the Full
Court's reasons for
judgment[66].
The Commission's attack was that the reasoning:
"ignores the context in which the second alternative [sub-par (vi)] is to be
read. The second alternative is prefaced by the use
of the words 'the
publication' and therefore directs the reader to s 65A(1)(a) and the goods
or services referred to in sub-paragraphs
(i) and (iii)."
While it is true that the words "the publication" refer back to sub-pars
(i)-(iv) of s 65A(1)(a), they appear in a portion of
par (a) commencing
with the word "where", the plain effect of which is to limit the breadth of the
expression "a publication of matter"
in the first line of s 65A(1)(a).
- There
is no doubt that s 65A(1)(a)(v) identifies a specific "kind" of "goods or
services", and a specific "kind" of "interests in
land". Each specific "kind"
respectively comprises those which are "relevant goods or services" and
"relevant interests in land"
within the definitions of those phrases in s
65A(3)[67].
Those definitions themselves turn on the notion of "kinds". There is thus a
linkage between the two "kinds" referred to in s 65A(1)(a)(vi)
and the two
"kinds" referred to in the definitions of "relevant goods or services" and
"relevant interests in land": indeed those
definitions are the only parts of
s 65A that refer in terms to a "kind". The class of narrower items cut out
from the broad
categories in s 65A(1)(a)(i)-(iv) falls into two groups numbered
"(v)" and "(vi)" in s 65A(1)(a). The two groups are alternatives.
It is the
natural reading of the phrase "of that kind" in the second group to treat it as
referring to the first group: the two
groups are not only contextually linked
as establishing qualifications on the breadth of the "goods or services"
referred to in s
65A(1)(a)(i) and (iii), and hence on the breadth of the words
"a publication of matter", but the second is immediately consecutive
to the
first. The usage of "that" in sub-par (vi) is usage of the word as a
demonstrative adjective. The Oxford English Dictionary gives as the
first meaning of the word "that" when used as a demonstrative adjective:
"The simple demonstrative used (as adjective in concord with a sb.), to indicate
a thing or person either as being actually pointed
out or present, or as having
just been mentioned and being thus mentally pointed
out."[68]
Before the "kinds" mentioned in sub-par (vi), the only "kinds" in s 65A(1)
that have been actually pointed out or have just
been mentioned are the kinds
referred to in sub-par (v) and defined in s 65A(3).
- In
this respect the trial judge's reasoning, which the Commission adopted, is open,
with respect, to criticism. She
said[69]:
"(v) and (vi) are alternatives: if (vi) is read in the absence of (v), 'goods or
services of that kind' would refer to the goods
or services of the kind to be
supplied, described in para (a)."
Even if that were true, it does not follow that sub-par (vi) has the same
meaning once a court takes into account, as it must, the
existence of sub-par
(v) and reads it alongside sub-par (vi).
- There
is a further relevant textual argument advanced by the Full
Court[70]:
"If a construction is given to s 65A(1)(a)(vi)(A) and (B) so that it
applies to any goods or services of any kind, then placita
(v) and (vi) cease to
be alternatives that govern the placita in (i)-(iv). Indeed, they would speak to
quite different circumstances.
[Placitum] (v) would be concerned with goods and
services only of the kind provided by the broadcaster in the case of a licensee
of a radio or television station, while (vi) would be concerned with any goods
or services of any kind. If [placitum] (vi) were to
be given that construction,
there would be no need for [placitum] (v).
Viewed in that way, s 65A(1)(a)(vi) complements s 65A(1)(a)(v) so
that if a prescribed information provider has made a
publication in connection
with the supply or possible supply of goods or services, the exemption will be
lost if the goods or services
were of a kind supplied by the prescribed
information provider or the publication was made on behalf of, or pursuant to a
contract,
arrangement or understanding with, a person who supplies goods or
services of a kind supplied by the prescribed information provider.
In other words, the purpose of s 65A(1)(a)(vi) is to extend the exception
to not only include the publication of matter in
connection with the supply or
possible supply of goods or services by the prescribed information provider
itself, but also goods
or services of the kind supplied by the prescribed
information provider but, in fact, supplied by some other person on its behalf
or pursuant to a contract, arrangement or understanding with that other
person."
These points are forceful. The Commission contended that on this approach
sub-par (vi) was "little more than a gloss on [sub-par]
(v)". Sub-paragraph
(vi) does not gloss sub-par (v); it widens it. The fact that sub-par (vi) may
not widen sub-par (v) much does
not establish that the construction is wrong.
- An
argument from clarity. One of the trial judge's reasons for preferring the
Commission's construction was that
if[71]:
"para (a) were intended to refer to goods or services and interests in land that
were of the 'relevant' kind only, the [drafting]
could have made that clear
within subparas (a)(i)-(iv) or in (vi)."
The Full Court met that contention in the following
words[72]:
"[T]he drafter could not use the defined term 'relevant goods and services' in s
65A(3), 65A(1)(a)(vi)(A) or (B) because, as defined,
'relevant goods or
services' only applies to a prescribed information provider and
s 65A(1)(a)(vi)(A) and (B) are directed to
persons and corporations who may
not be prescribed information providers. So the drafter has used the expression
'goods and services
of that kind' referring to the goods or services in the
definition which is incorporated in
s 65A(1)(a)(v)."
That is a compelling specific answer to the trial judge's point. The
elaboration and convolution of the drafting in s 65A,
which flow,
paradoxically, from its compression, are perhaps to be deplored. But analysts
who take advantage of the hindsight conferred
by the opportunity to reflect in
detail on legislative language in the context of a particular problem can often
see that a different
form of words might have been clearer. That circumstance is
often inconclusive. That is so here.
A gap?
- The
Commission submitted that a factor pointing against the correctness of the
respondents' construction was that, if it were correct,
there would be "subtle
forms of conduct (and myriad others like them)" which would be immune from s 52
and the other relevant provisions
of the Act. This would arise, according to
the Commission, because these subtle forms of conduct would not be
"advertisements" within the meaning
of s 65A(1)(b), and the
respondents' construction would leave the promotion of goods and services
of a person other than the prescribed information
provider within the immunity,
and not removed from the immunity by s 65A(1)(b). That would create what
the trial judge described as a "gap" in
cases[73]:
"where the publication concerned the sale or supply of commercial subject-matter
but was made on behalf of the third person or pursuant
to an agreement that
could not be described as 'an
advertisement'."
The Commission gave three examples. One was the example employed by the Minister
in his Second Reading Speech. Another was the adoption
by a radio broadcaster
as programme content of a press release issued by a supplier of goods or
services, in circumstances where
the supplier sponsored the programme (rather
than contracting for placement of specific advertisements) and where there was
an understanding
that the supplier's press releases would receive air time.
Another example was a publication concerning a complaint about or criticism
of
goods or services made pursuant to an arrangement or understanding with a
competitor of the supplier of the goods or services
criticised, in exchange for
the competitor taking out paid advertising; the publication would occur not
merely in order to provide
news or information, but to fulfil the terms of the
arrangement or understanding.
- Problems
of this kind would have to be decided from case to case as they arise. As
indicated above, the first example – that
given by the Minister –
probably is an advertisement. Even if to some minds the other examples are less
clear, they do not
so plainly fall outside the category of advertisements as to
suggest absurdity or extreme practical inconvenience in the
respondents' construction.
Nor is the statutory language so ambiguous or
obscure that the possibility that the examples may not be advertisements compels
a
different construction.
A new textual point
- That
disposes of the principal attacks made by the Commission on the Full Court's
reasoning. But the course of oral argument in
this Court suggested a new
approach – new in the sense that it had not been examined by either the
parties at any stage or
by the courts below. It was an approach which the
Commission speedily adopted. The new approach rests on treating s 65A not as
creating an immunity from liability subject to two exceptions, but as creating
an immunity from liability subject to quite
a large number of exceptions. Thus
s 65A(1)(a) creates an exception when sub-pars (i) and (v) are read together.
Section 65A(1)(a) creates a second exception when sub-par (i) and
sub-par (vi)(A) are read together. Section 65A(1)(a) creates a third
exception when sub-par (i) and sub-par (vi)(B) are read together – and so
on. The force of this analysis is
that it tends to weaken one of the
respondents' key points – the demonstrative adjective analysis resting on
the proximity
of the words "of that kind" in sub-par (vi) to the words
"relevant goods or services" and "relevant interests in land" in sub-par (v).
On that analysis,
which breaks s 65A up into quite a number of provisions of
differential operation, the proximity of sub-pars (v) and (vi) becomes much
less significant.
- With
all respect to those minds which are attracted to this new point, the
construction of the Full Court remains preferable. Section 65A(1) is a single
sentence. Although it is a complex sentence, although it has to be read several
times, and although it may have taken
a very long time to write, it does not
take long to read. And it does not take long to read the balance of s 65A.
Section 65A is not like an entire statute, in which different provisions
may have to be read distributively. Nor is there any explicit indication
(as
there is in s 6 of the Act) that it is to be construed in the light of a
distributive reading, as distinct from being applied in that way when the
particular
circumstances call for it. It is true that when s 65A is applied to
particular sets of circumstances, only some parts of the language may need to be
examined in order to assess whether
conduct claimed to fall within it does fall
within it. But in other cases the application of those parts of the language
may not
be clear because their meaning is unclear. Assessment of their meaning
may depend on construing the sentence as a whole. Construing
this particular
sentence as a whole would, in my opinion, entail reading it as a unified piece
of prose rather than reading it in
its potential individual applications. When s
65A is read through, the lack of any explicit reference to "kind" before that
conception appears in sub-par (v), read with the definitions
in s 65A(3),
suggests that the words "of that kind" in sub-par (vi) refer back to sub-par
(v).
Orders
- For
those reasons the construction adopted by the Full Court was correct. So was
its decision to allow the appeal from the trial
judge. It is therefore
unnecessary to consider the respondents' notice of contention. The appeal to
this Court should be dismissed
with costs.
[1] Universal Telecasters (Qld) Ltd
v Guthrie (1978) 18 ALR 531; Universal Telecasters (Qld) Ltd v Ainsworth
Consolidated Industries Ltd [1983] FCA 195; (1983) 78 FLR 16; Global Sportsman Pty Ltd v
Mirror Newspapers Ltd [1984] FCA 180; (1984) 2 FCR 82; Australian Ocean Line Pty Ltd v
West Australian Newspapers Ltd [1983] FCA 66; (1983) 47 ALR 497.
[2] Section 12DA of the Australian
Securities and Investment Commission Act 2001 (Cth) renders unlawful, in the
language of s 52, conduct in relation to financial services which is misleading
or deceptive or
is likely to mislead or deceive. Section 12DN is in similar
terms to s 65A.
[3] Fair Trading Act 1987
(NSW), s 60; Fair Trading Act 1987 (SA), s 74; Fair Trading Act
1987 (WA), s 63; Fair Trading Act 1989 (Qld), s 51; Fair Trading
Act 1990 (Tas), s 28; Consumer Affairs and Fair Trading Act (NT), s
60; Fair Trading Act 1992 (ACT), s 31. Section 32 of the Fair
Trading Act 1999 (Vic) differs materially from s 65A of the TPA.
[4] Seven Network Ltd was joined on
the basis that it had entered into the relevant contract, arrangement or
understanding: Australian Competition and Consumer Commission v Seven Network
Ltd [2007] FCA 1505; (2007) 244 ALR 343 at 345 [5].
[5] [2007] FCA 1505; (2007) 244 ALR 343.
[6] Channel Seven Brisbane Pty Ltd
v Australian Competition and Consumer Commission [2008] FCAFC 114; (2008) 249 ALR 97.
[7] [2007] FCA 1505; (2007) 244 ALR 343 at 351
[32].
[8] [2007] FCA 1505; (2007) 244 ALR 343 at 346 [8].
[9] [2007] FCA 1505; (2007) 244 ALR 343 at 354
[45].
[10] [2007] FCA 1505; (2007) 244 ALR 343 at 354 [45],
352 at [38].
[11] [2007] FCA 1505; (2007) 244 ALR 343 at 346
[8].
[12] [2007] FCA 1505; (2007) 244 ALR 343 at 346
[8].
[13] [2007] FCA 1505; (2007) 244 ALR 343 at 351
[30]- [31].
[14] [2007] FCA 1505; (2007) 244 ALR 343 at 354
[42]- [45].
[15] [2007] FCA 1505; (2007) 244 ALR 343 at 355 [52]
and [54], 356 [58]-[59].
[16] [2008] FCAFC 114; (2008) 249 ALR 97 at 102
[20]- [21].
[17] TPA s 65A(1)(a)(i) and
(iii).
[18] TPA s 65A(1)(a)(vi).
[19] TPA s 65A(1)(a)(vi)(A).
[20] [2007] FCA 1505; (2007) 244 ALR 343 at 365 [92]
and [94].
[21] [2008] FCAFC 114; (2008) 249 ALR 97 at 108
[53].
[22] TPA s 65A(3).
[23] For a description of that
background see Advanced Hair Studio Pty Ltd v TVW Enterprises Ltd (1987)
18 FCR 1 at 6-11.
[24] Australia, Senate,
Parliamentary Debates (Hansard), 16 October 1984 at 1710.
[25] Australia, Senate,
Parliamentary Debates (Hansard), 16 October 1984 at 1710.
[26] The Australian Oxford
Dictionary, 2nd ed (2004) at 18.
[27] The Macquarie
Dictionary, accessed online at http://www.macquariedictionary.com.au
on 24 March 2009.
[28] The Australian Oxford
Dictionary, 2nd ed (2004) at 18.
[29] The Macquarie
Dictionary, accessed online at http://www.macquariedictionary.com.au
on 24 March 2009.
[30] Butcher v Lachlan Elder
Realty Pty Ltd [2004] HCA 60; (2004) 218 CLR 592 at 605 [38]- [40]; [2004] HCA 60.
[31] [2007] FCA 1505; (2007) 244 ALR 343 at 362
[80].
[32] Australian Competition and
Consumer Commission v Leahy Petroleum Pty Ltd [2007] FCA 794; (2007) 160 FCR 321 at 334-335
[35]- [37]; Apco Service Stations Pty Ltd v Australian Competition and
Consumer Commission (2005) 159 FCR 452 at 464 [46]; Rural Press Ltd v
Australian Competition and Consumer Commission [2002] FCAFC 213; (2002) 118 FCR 236 at 257-258
[79]; Australian Competition and Consumer Commission v Amcor Printing Papers
Group Ltd [2000] FCA 17; (2000) 169 ALR 344; Trade Practices Commission v Service
Station Association Ltd [1993] FCA 405; (1993) 44 FCR 206 at 230-231; Trade Practices
Commission v Email Ltd (1980) 31 ALR 53 at 56; Trade Practices Commission
v Nicholas Enterprises Pty Ltd (1979) 26 ALR 609 at 629; Top Performance
Motors Pty Ltd v Ira Berk (Qld) Pty Ltd (1975) 5 ALR 465 at 469-470.
[33] (1985) 58 ALR 549 at
586-587.
[34] (1988) 82 ALR 415 at
427.
[35] See [34].
[36] [2007] ATPR §42-187
at 48,069 [34]. This judgment was affirmed on appeal to the Full Court of the
Federal Court of Australia:
Bond v Barry (2008) 249 ALR 110.
[37] Australia, Senate,
Parliamentary Debates (Hansard), 16 October 1984 at 1710.
[38] Australian Competition and
Consumer Commission v Seven Network Ltd [2007] FCA 1505; (2007) 244 ALR 343.
[39] Channel Seven Brisbane Pty
Ltd v Australian Competition and Consumer Commission [2008] FCAFC 114; (2008) 249 ALR 97.
[40] Section 82(1) of the Act now
provides:
"Subject to subsection (1AAA), a person who suffers loss or damage by conduct
of another person that was done in contravention of
a provision of Part IV, IVA,
IVB or V or section 51AC may recover the amount of the loss or damage by action
against that other person
or against any person involved in the
contravention."
Section 52 is a provision of Pt V.
[41] Global Sportsman Pty Ltd v
Mirror Newspapers Pty Ltd [1984] FCA 180; (1984) 2 FCR 82 at 86.
[42] TCN Channel Nine Pty Ltd v
Ilvariy Pty Ltd (2008) 71 NSWLR 323 at 339 [77].
[43] TCN Channel Nine Pty Ltd v
Ilvariy Pty Ltd (2008) 71 NSWLR 323 at 339-341 [78]-[93].
[44] Australian Ocean Line Pty
Ltd v West Australian Newspapers Ltd [1983] FCA 66; (1983) 47 ALR 497; Global Sportsman
Pty Ltd v Mirror Newspapers Pty Ltd [1984] FCA 180; (1984) 2 FCR 82.
[45] Australia, The Trade
Practices Act – Proposals for Change, Green Paper, February 1984
at [70]. The other sections were s 53 (which deals with certain false or
misleading representations about goods or services), s 53A (which deals with
certain false representations and misleading or offensive conduct in relation to
land), s 55 (which deals with certain conduct liable to mislead the public in
relation to goods), s 55A (which deals with certain conduct liable to mislead
the public in relation to services) and s 59 (which deals with certain
other false or misleading representations about business activities). These are
the sections from which
s 65A now provides immunity.
[46] Australia, Senate,
Parliamentary Debates (Hansard), 16 October 1984 at 1710.
[47] Section 65A is set out above at
[10] and [60].
[48] See the definition of
"prescribed information provider" in s 65A(3) set out above at [10].
[49] See s 65A(2), set out above at
[10].
[50] See the definitions of
"relevant goods or services" and "relevant interests in land" in s 65A(3), set
out above at [10]; see also at [67].
[51] Australian Competition and
Consumer Commission v Seven Network Ltd [2007] FCA 1505; (2007) 244 ALR 343 at 365 [92]- [94].
[52] Australian Competition and
Consumer Commission v Seven Network Ltd [2007] FCA 1505; (2007) 244 ALR 343 at 367 [106].
[53] Channel Seven Brisbane Pty
Ltd v Australian Competition and Consumer Commission [2008] FCAFC 114; (2008) 249 ALR 97 at
107-108 [47]- [57].
[54] Butcher v Lachlan Elder
Realty Pty Ltd [2004] HCA 60; (2004) 218 CLR 592 at 621 [97] per McHugh J (dissenting);
[2004] HCA 60, approving Accounting Systems 2000 (Developments) Pty Ltd v CCH
Australia Ltd (1993) 42 FCR 470 at 503 per Lockhart and Gummow JJ.
[55] Australia, Senate, Statute Law
(Miscellaneous Provisions) Bill (No 2) 1984, Explanatory Memorandum at 64.
[56] Australia, Senate,
Parliamentary Debates (Hansard), 16 October 1984 at 1710.
[57] Australian Competition and
Consumer Commission v Seven Network Ltd [2007] FCA 1505; (2007) 244 ALR 343 at 363 [88].
[58] Australia, Senate,
Parliamentary Debates (Hansard), 16 October 1984 at 1710.
[59] At least on the appeal: on the
special leave application counsel then appearing for the Commission twice said,
correctly, that
nothing could be derived from the Second Reading Speech.
[60] Australia, Senate,
Parliamentary Debates (Hansard), 16 October 1984 at 1710.
[61] The sentence appearing in the
Senate Speech quoted above beginning "The exemption is not available" appears in
the following terms
in the House of Representatives Speech:
"The exemption is not available, however, in respect of publication of
information relating to goods, services or land of a kind supplied
by the
information relating to goods, services or land where the publication is made
pursuant to a contract, arrangement or understanding
with a person who supplies
goods, services or land of that kind or with a body corporate related to a body
corporate that supplies
such goods, services or land."
Australia, House of Representatives, Parliamentary Debates (Hansard),
13 September 1984 at 1296.
[62] Sun Earth Homes Pty Ltd v
Australian Broadcasting Corporation (1993) 45 FCR 265. The trial judge
referred to this case at Australian Competition and Consumer Commission v
Seven Network Ltd [2007] FCA 1505; (2007) 244 ALR 343 at 363 [86].
[63] Beckwith v The Queen
[1976] HCA 55; (1976) 135 CLR 569 at 576; [1976] HCA 55.
[64] Channel Seven Brisbane Pty
Ltd v Australian Competition and Consumer Commission [2008] FCAFC 114; (2008) 249 ALR 97 at
107 [49]- [50].
[65] Channel Seven Brisbane Pty
Ltd v Australian Competition and Consumer Commission [2008] FCAFC 114; (2008) 249 ALR 97 at
108 [51].
[66] See [111] above.
[67] The definitions are set out
above at [10]; see also at [67].
[68] Simpson and Weiner (eds),
The Oxford English Dictionary, 2nd ed (1989), vol 17 at 870.
[69] Australian Competition and
Consumer Commission v Seven Network Ltd [2007] FCA 1505; (2007) 244 ALR 343 at 364 [89].
[70] Channel Seven Brisbane Pty
Ltd v Australian Competition and Consumer Commission [2008] FCAFC 114; (2008) 249 ALR 97 at
108 [54]- [56].
[71] Australian Competition and
Consumer Commission v Seven Network Ltd [2007] FCA 1505; (2007) 244 ALR 343 at 364 [89].
[72] Channel Seven Brisbane Pty
Ltd v Australian Competition and Consumer Commission [2008] FCAFC 114; (2008) 249 ALR 97 at
108 [52].
[73] Australian Competition and
Consumer Commission v Seven Network Ltd [2007] FCA 1505; (2007) 244 ALR 343 at 365 [91].
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