The Federal Court of Australia has declared that Infinite Plus Pty Ltd trading as Chatime (“Chatime”), by distributing in July and August 2010 a pocket sized colour booklet entitled “TOP SECETS” (“the Booklet”) and by causing to be published a full page advertisement in the Citywalker magazine on 8 August 2010 (“the Advertisement”), engaged in misleading or deceptive conduct or conduct that was likely to mislead or deceive and thereby contravened s 52 of the Trade Practice Act 1974 (“the Act”).
The Court concluded that the Booklet and the Advertisement represented that Chatime’s products were superior to EasyWay’s products and, in particular, that Chatime’s products were healthier, tastier, fresher and more nutritional than EasyWay’s products in circumstances where “there was no basis in fact for such representations to be made”.
In proceedings commenced in August 2010, Easy Way Australia Pty Ltd and certain associated companies (“EasyWay”) claimed that the representations made by Chatime in the Booklet and the Advertisement were false and misleading and contravened the Act.
The Court found that the Booklet and the Advertisement contained representations which were inaccurate and misleading or likely to mislead or deceive in circumstances where Chatime had no factual basis for making any of them.
Justice Foster concluded that the contraventions of the Act committed by Chatime were “serious” and that “Chatime embarked upon a deliberate plan to run down the applicants and to denigrate their Easy Way products even though they had no basis for thinking that any of the claims which they proposed to make in respect of the applicants’ Easy Way products were true.”
The Court has ordered that all remaining copies of the offending materials in the possession, custody or power of Chatime, whether in printed or electronic form, be destroyed. The Court has also ordered Chatime to permanently disable access to and delete all such offending material from all websites and other electronic media and to publish and pay for a corrective advertisement.
The judgment of the Court (EasyWay Australia Pty Ltd and others v Infinite Plus Pty Ltd [2011] FCA 351 suit number: NSD 1063 of 2010) can be downloaded at www.easywaytea.com.au and www.austlii.edu.au/au/cases/cth/FCA/2011/35.html
EasyWay is pleased with the outcome of the proceedings and the rulings made by the Court. It is now totally focused on the continued growth of the franchised network. EasyWay’s National Business Development Manager, Alan Carroll adds, “by providing a proven franchise model and transparent business practices, EasyWay is poised to experience their fastest and biggest growth in store numbers to date. With strategic sites under offer, and an ongoing program of product development and research in place, EasyWay is cementing their position as the number one bubble tea operator in Australia”.
First launched in Taiwan in 1992, EasyWay Tea is an international, multi-award winning franchise specializing in tea, with an extensive range of unique tea related beverages. Currently with stores in operation around the world, EasyWay has rapidly taken the beverage market by storm with their popular tea creations.
Katheryn Lui, EasyWay Australia, National Marketing Manager, (02) 8339 1031, 0425 101 555
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