Posted by Elizabeth Gore-Jones
on 16 April 2024
In the recent DG Institute case, the Federal Court delivered a stern warning to businesses about the consequences of misleading and deceptive conduct, when Master Wealth Control Pty Ltd, trading as DG Institute, and its Director Dominque Grubisa were found to have breached the Australian Consumer Law by making false or misleading representations in the promotion and sale of their education programs.
Between April 2017 and November 2022, DG Institute marketed two programs, Real Estate Rescue (RER) and Master Wealth Control (MWC), attracting over 3000 students who paid significant fees ranging from $4,500 to $9,200 each. However, the Court ruled that the representations made by DG Institute about these programs were false or misleading, leading to dissatisfaction among students and sparking regulatory action by the Australian Competition and Consumer Commission (ACCC).
Specifically, the Court identified several false claims made by DG Institute, including promises regarding the effectiveness of certain asset protection strategies and misrepresentations about legal precedents.
The Court also found that Grubisa was knowingly involved in the company's deceptive practices, having played a pivotal role in crafting, approving, and disseminating false and misleading information through promotional materials and program content.
ACCC Commissioner Liza Carver emphasized the importance of truthfulness in business communications, stating, "This case is another reminder that businesses must ensure statements they make when promoting products or services to consumers are accurate and not misleading."
She added, “It should also serve as a strong reminder to company directors that they may be held liable for their involvement in false or misleading representations made by the company in breach of the Australian Consumer Law.”
As the legal proceedings continue, the ACCC seeks injunctions, penalties, consumer redress, costs and even disqualification of Grubisa from managing corporations.
This case serves as a clear signal to business owners about the severe consequences of engaging in misleading and deceptive conduct and highlights the need for diligence and transparency in all business dealings.
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