Court clarifies unconscionable conduct

  • A recent decision provides some valuable insights into the standard of conduct required by businesses to avoid the unconscionable conduct provisions of the Competition and Consumer Act 2010 (ACL).
  • It is unconscionable to conduct your business outside acceptable community norms, standards or values.
  • In this decision the Court of Appeal set out the considerations that ought to be taken into account to determine the community standard against which the impugned conduct is to be assessed.

Business man being stepped on

The New South Wales Court of Appeal has refined the meaning of unconscionable conduct pursuant to s 22 of the Competition and Consumer Act 2010 (ACL), and its predecessor provisions of the Trade Practices Act 1974 (TPA), as it applies to business transactions in its recent decision in the matter of Ipstar Australia Pty Ltd v APS Satellite Pty Ltd [2018] NSWCA 15.

Thomson Geer successfully acted for APS Satellite Pty Ltd (APS) (formerly known as SkyMesh) in a proceeding it brought against IPSTAR Australia Pty Ltd (IPSTAR), a wholesale supplier of broadband equipment and satellite bandwidth services. IPSTAR is a wholly owned subsidiary of Thai telecommunications company, Thaicom Public Company Ltd.

This article is exclusive to Governance Institute members and subscribers.

To read the full article…

or Become a member