ACCC Takes Action Against Laurence Hann after Heartlink Products Case

Tuesday 2 February 2016 @ 9.41 a.m. | Legal Research | Trade & Commerce

It was reported in an ACCC Media Release in late 2015 that the Australian Competition and Consumer Commission (the ACCC) commenced proceedings in the Federal Court alleging that Mr Laurence Glynne Hann was in contempt of orders which were made by Tracey J on 28 May 2012.

Background

On 28 May 2012, Tracey J found Mr Hann had engaged in false, misleading or deceptive conduct in the promotion and sale of a parcel distribution business for “Heartlink” branded household products (Heartlink).

His Honour found that consumers were misled about the profitability and earnings potential of the business opportunity as well as the overall viability of the business.

Comment from the Judge

Taking into account what the judge described as “an egregious series of contraventions” of consumer protection law, the Court imposed orders disqualifying Mr Hann from managing a corporation for 15 years as well as preventing him from engaging in certain business activities.

Breaches of the Court Order

The ACCC now alleges that Mr Hann has breached a 15-year court order imposed by his Honour which prevents Mr Hann from, in trade or commerce, carrying on a business or supplying goods or services:

  • by which, or in connection with which, persons are invited to invest money or perform work;
  • by which, or in connection with which, any claim is made that moneys or profits earned by the sale of goods are donated to charity; or
  • where the goods or services concerned are or include household cleaning products.

Further Breaches by Mr Hann

The ACCC also alleges that Mr Hann breached other related injunctions ordered by Tracey J. It is also alleged that Mr Hann has continued to be directly involved in a business involving the sale of household cleaning products and has continued to make claims that some of the moneys earned from the sale of those goods would be donated to charity. Mr Hann also allegedly recruited a person to make sales and distribute products in connection with that business.

The ACCC Chairman Rod Sims said:

“The 15 year injunctions ordered by the Court were imposed to prevent Mr Hann from establishing companies and other entities and using them to promote what the judge described as dubious business opportunities in order to obtain funds. The decision to institute proceedings demonstrates the ACCC’s determination to pursue contempt action when it alleges that a person has breached court orders which the ACCC has obtained for the protection of consumers and small businesses.”

TimeBase is an independent, privately owned Australian legal publisher specialising in the online delivery of accurate, comprehensive and innovative legislation research tools including LawOne and unique Point-in-Time Products.

Sources:

ACCC takes contempt action against Laurence Glynne Hann – ACCC Release MR 260/15 

Related Articles: