ACCC v Hillside (Australia New Media) Pty Ltd t/a Bet365 (No 2) [2016] FCA 698: Bet365 Found Guilty of Misleading and Deceptive Practices
Tuesday 14 June 2016 @ 10.02 a.m. | Trade & Commerce
A judgment handed down by the Federal Court has ordered Hillside (Australia New Media) Pty Ltd (trading in Australia as Bet365) and its UK service company, Hillside (Shared Services) Limited (together, Bet365) to pay penalties totaling $2.75 million for making false representations by Bet365’s “free bets” offer to new customers, in proceedings brought by the Australian Competition and Consumer Commission (ACCC).
It is alleged that Bet365 contravened ss 18, 29, 224, 232 and 246 of the Australian Consumer Law (the ACL) [Sch 2 to the Competition and Consumer Act 2010 (Cth)].
Background
Bet365 is one of the world’s largest online betting providers. The free bet claims came to the attention of the ACCC as part of a co-ordinated sweep of “free” representations on websites targeting Australian consumers. This initiative was part of a larger global effort through the International Consumer Protection and Enforcement Network.
The Investigation
In September 2015, the Federal Court found that Bet365’s promotion of a “$200 FREE BETS FOR NEW CUSTOMERS” offer to customers in Australia between March 2013 to 13 January 2014 was misleading and deceptive and involved false representations because there were a number of restrictions and limitations that applied to the offer that were not brought to the customer’s attention.
In order to receive the represented $200 free bet offer, new customers were required to deposit and then gamble $200 of their own money first, before they could receive their $200 free bet.
Reaction from the consumer watchdog
The Chairman of the ACCC, Rod Sims said:
“In this sense, if the restrictions and limitations had been appropriately brought to consumers’ attention, they would have been able to recognise that there was no ‘free’ bet, particularly given that they had to risk their own money before making such a bet. The ‘free bets’ offer by Bet365 was aimed at enticing customers, particularly new customers who had not previously used such types of services and who were drawn into what the judge described as a ‘web of deception’. ...These penalties should serve as a warning to all businesses that is it not acceptable to promote ‘free’ offers as a headline offer without ensuring that any restrictions or limitations are disclosed in a prominent way that ensures consumers are fully informed before they are ‘enticed into a marketing web’."
The Judgment
In imposing these penalties, Justice Beach noted [at para 3] that the companies are:
… large and collectively market themselves in Australia as the world’s biggest online betting company.
The Federal Court found that the conduct was serious, extensive in its duration and affected a large number of Australian consumers.
Further it was found that the conduct involved a significant element of recklessness which occurred in an environment where there was no substantial and rigorous compliance program. The Court also ordered Bet365 to send a corrective notice, by email, to affected consumers.
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Sources:
ACCC v Hillside (Australia New Media) Pty Ltd trading as Bet365 (No 2) [2016] FCA 698 (10 June 2016)
Bet365: Online betting agency fined $2.75 million for misleading punters - abc.net.au
Court imposes $2.75 million in penalties on Bet365 companies for misrepresenting free bet offer – ACCC Release MR 101/16
