ACCC Pursues Company Director To Pay $50,000 Fine For Printer Ink Scam

Friday 25 August 2017 @ 9.22 a.m. | Legal Research | Trade & Commerce

The Australian Competition and Consumer Commission (the ACCC) has commenced proceedings in the Federal Court against Mr Tuan Nguyen to enforce payment of a $50,000 penalty previously ordered for breaches of Australian consumer law.

In 2013, the Court found that Mr Nguyen was knowingly concerned in false or misleading representations made by Artorios Ink to five small businesses to sell printer cartridges. The Court ordered Nguyen to pay a penalty of $50,000 but he made no payments and filed for bankruptcy.

Background

Artorios Ink was a telemarketing company that sold printer cartridges to businesses from 2008 to 2012.

In its 2013 judgment, the Federal Court found that Artorios Ink engaged in conduct that was misleading or deceptive and made false or misleading representations to five small businesses that:

  • the business had agreed to purchase printer cartridges from Artorios Ink, when in fact there was no such agreement;
  • Artorios Ink was an approved, regular or current supplier of the business, when in fact it was not; and
  • Artorios Ink had instituted proceedings in the Magistrates’ Court of Victoria against the business to obtain payment for printer cartridges, when in fact Artorios Ink had not instituted any such proceedings.

Artorios Ink was deregistered on 25 January 2015.

The Current ACCC Action

As Nguyen has now been discharged from bankruptcy, the ACCC is now seeking a garnishee order requiring his employer to withhold part of his wages in order to pay the penalty previously ordered.

Comment from the ACCC

ACCC Deputy Chair Dr Michael Schaper commented:

“Individuals who have contravened the Australian Consumer Law cannot escape paying Court ordered penalties by filing for bankruptcy. As in this case, the ACCC may take action after they are discharged from bankruptcy. If businesses and individuals do not pay penalties ordered by the Court in ACCC proceedings, the ACCC will take action where appropriate to enforce payment of those penalties.”

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Sources:

ACCC takes action to enforce $50,000 penalty – ACCC Release MR 136/17

ACCC chases director to pay $50,000 fine for printer ink scam – crn.com.au

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