A workplace relations company has been fined by the full Federal Court a staggering $3 million for incorrectly leading its online consumers to believe that it was or had an affiliation with a government agency.
The workplace relations company, which operated in multiple Australian states, was found to have engaged in misleading and deceptive conduct by advertising through its Google Ads published on Google search results pages that it was “affiliated” by the Australian Government or associated with a government department - when neither of these were true.
Background
In December 2018, the ACCC instituted proceedings against a workplace relations company, alleging that their Google Ads misled consumers into believing it was, or was affiliated with, a government agency.
The action was initially unsuccessful; In October 2020, the Federal Court dismissed the ACCC’s case. But the ACCC appealed, and, in August 2021, the Full Federal Court unanimously upheld the ACCC’s appeal and imposed a penalty of $1 million on the said workplace relations company.
The ACCC is appealing the penalty judgment on the basis that the $1 million penalty ordered is manifestly inadequate. ACCC Deputy Chair Mick Keogh said, “Any attempt to misrepresent a business as being part of the government is a serious breach of trust, and of our consumer laws.” The ACCC is seeking a penalty of $5 million to deter other companies from misleading potential customers.
As a friendly reminder to NECA Members who use Google Adwords or any form of advertising, please be sure you comply with all applicable advertising rules and regulations.
And, if you need help with WR, HR or WH&S, your NECA membership includes complimentary access to several Workplace Relations, Human Relations, Mental Health and Legal services, and discounted rates for a full suite of industry-specialist services. Follow the links for more information, or email [email protected] or call 1300 300 031.