NRM Found in Contempt of Court
Wednesday 10 February 2016 @ 12.07 p.m. | Trade & Commerce
The Federal Court has found NRM Corporation Pty Ltd and NRM Trading Pty Ltd (NRM) guilty of contempt of court. NRM operated the business known as Advanced Medical Institution (AMI). The finding came after the Australian Competition and Consumer Commission (ACCC) took NRM to court for failing to comply with orders made by Justice North in earlier proceedings brought by the Commission.
Background
As mentioned in our previous TimeBase article, in earlier proceedings brought by the ACCC, NRM was found to have engaged in unconscionable conduct and employed unfair contractual terms in its supply and promotion of medical services and medications to men suffering from sexual dysfunction. Justice North had made an order in these proceedings permanently prohibiting NRM from making any more representations about the efficacy of treatments offered except where they are made by a duly qualified medical practitioner during face to face consultation.
Contempt Proceedings
The ACCC brought the contempt proceedings after NRM had failed to comply with the first order. Justice Moshinsky found that NRM committed contempt of court by making representations on its website and in radio and television advertisements regarding the efficacy of AMI sexual dysfunction treatments offered by NRM in breach of Justice North’s orders. He ruled that the earlier order had been clear and unambiguous and NRM’s breach of the order was a deliberate act in contempt of court.
ACCC Chairman Rod Sims said:
“This decision reinforces the importance of abiding by any orders which the ACCC has obtained for the protection of consumers."
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