Director of Consumer Affairs Victoria v Gibson (No 3) [2017] FCA 1148: Fake Wellness Blogger Fined over False Cancer Claims

Friday 29 September 2017 @ 11.00 a.m. | Legal Research | Trade & Commerce

Recently, in the case of Director of Consumer Affairs Victoria v Gibson (No 3) [2017] FCA 1148 (28 September 2017), the Federal Court (the Court) has ordered Belle Gibson (the Respondent) to pay a fine of $410,000 after being found guilty of misleading and deceptive conduct in early 2017.

The Court found she misled consumers when she claimed her brain cancer was cured through alternative therapies and nutrition.

Background to the Case

The Respondent claimed she had brain cancer and healed herself with natural remedies revealing later in a 2016 interview that she never had the disease.  She also lied to consumers about donating to charities from the sales of her Whole Pantry app and companion book,

The investigation was launched by Consumer Affairs Victoria (CAV) and in June 2016 they brought a civil case against Ms Gibson and her company Inkerman Road Nominees - which has since been shut down.

In March 2017, Federal Court Judge Debbie Mortimer upheld "most but not all" of CAV's allegations against Gibson.  In the current case Her Honour ordered her to pay a total of $410,000 for five contraventions of Australian Consumer Law (Vic) [Ch 2 to the Australian Consumer Law and Fair Trading Act 2012 (Vic) (Act 21 of 2012)] relating to false claims she made that money from the sales would go to various charities.

The Current Case

Mortimer J said Gibson profited from her false statements about donating substantial sums of the proceeds of her sales of The Whole Pantry app and book over a year, during that time she repeatedly made the claims while building a high public profile, and used those claims to help shape her profile with the court hearing she made false claims about donating a large portion of her profits to charities.

Her Honour commented at para [58]:

"… One of the clear demonstrations of the dishonesty and self-interest attending Ms Gibson's conduct was the fact she and the company she controlled did not in fact make any donations to the organisations she had mentioned in her publicity statements until public questioning of her claims ..."

Mortimer J also commented that Gibson had been "cavalier about the truth", unconcerned about representations she had made and "prepared to tell outright lies" and commenting further at para [84]:

"… Once again, it appears she has put her own interests before those of anyone else … If there is one theme or pattern which emerges through her conduct, it is her relentless obsession with herself and what best serves her interests".

Her Honour was also critical of the Respondent’s failure to participate in court proceedings and apologise showed she took no responsibility for her conduct, with the Judge saying she had "elected not to take any responsibility for her conduct" [at 83].

The Penalties

Ms Gibson was fined for five separate contraventions of the Australian Consumer Law (Vic), they include:

  • $90,000 for failing to donate proceeds from the sale of The Whole Pantry app, as publicly advertised;
  • $50,000 for failing to donate proceeds from the launch of The Whole Pantry app;
  • $30,000 for failing to donate proceeds from a 2014 Mother’s Day event;
  • $90,000 for failing to donate other company profits; and
  • $150,000 for failing to donate 100 per cent of one week's app sales to the family of a boy who had an inoperable brain tumour.

CAV requested the court to order Ms Gibson to pay for full-page apology advertisements in newspapers, but the trial judge refused, saying that most of Ms Gibson's contravening conduct occurred on social media. In making the decision, Her Honour said Gibson would be able to pay the penalty in instalments.

Regarding the impact of the Respondent’s conduct and its effect on consumers, Mortimer J commented at para [115]:

"… it [would have been] more likely to have brought home to Ms Gibson the impact of her conduct, and its offensiveness to members of the Australian community who really are struggling with cancer and its effects. Perhaps there were good reasons no such orders were sought. It is not possible to know."

Previous Penalties

In April 2017, the respondent was ordered to pay a $30,000 contribution to CAV towards the cost of the case.

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. Nothing on this website should be construed as legal advice and does not substitute for the advice of competent legal counsel.

Sources:

Belle Gibson, fake wellness blogger, fined $410,000 over false cancer claims - abc.net.au

Guru Belle Gibson fined $410K over lies - 9news.com.au

Belle Gibson fined $410,000 after claiming she cured cancer with natural remedies - sbs.com.au

Director of Consumer Affairs Victoria v Gibson (No 3) [2017] FCA 1148 (28 September 2017)

Related Articles: