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ARTICLE · 07 JUNE 2018

Paying the penalty – Recent victories for the ACCC

These companies breached the ACL, by false and misleading representations (Thermomix) and unconscionable conduct (Ford).

AustraliaConsumer Protection
Lillian De Kantzow (Formerly With Bryks Lawyers)
Lillian De Kantzow (Formerly With Bryks Lawyers)
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ACCC v Thermomix In Australia Pty Ltd

The Australian Competition and Consumer Commission (ACCC) has won its action against Thermomix In Australia Pty Ltd (Thermomix) after the Federal Court ruled that Thermomix knowingly kept safety issues relating to one of their appliances secret. Thermomix was ordered to pay $4.6 million in penalties, plus costs.

It was held that Thermomix had made false and misleading representations and misled the public in an effort to conceal that Thermomix's TM31 machine has a faulty lid. The lids in question had a malfunctioning seal which caused hot food or liquid to escape from the bowl, giving several consumers severe burns. The Court found that Thermomix knew of this risk from 7 July 2014 but still continued to promote and supply the faulty product until 6 September 2014. After they ceased supplying the product, it still took another 2 weeks before Thermomix notified its customers that there may be an issue. A voluntary recall notice

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