What if I breach the Trade Practices Act?

Breaches of the trade practices provisions of the TPA could result in civil penalties being imposed on corporations which will be calculated as the greater of:

• $10 million;
• Three times the value of the gain obtained from the breach; or
• if the gain from the breach cannot be ascertained, 10% of the annual turnover of the company for the 12 month period prior to the breach.

 Further, individuals found to have breached the Act:

• May be disqualified by a court from being a director of a company or from otherwise being involved in its management for a period of time; and
• Will be unable to obtain an indemnity from a corporation (such as their employer) against the imposition of a pecuniary penalty under Part IV (anti-competitive conduct) or the legal costs of unsuccessfully defending or resisting penalty proceedings. It will also be an offence for corporations to provide such indemnities.

For consumer protection breaches, the maximum fines are $1.1 million for a corporation and $220,000 for an individual. In addition to fines and penalties a court can: vary contracts; impose injunctions or damages orders on companies or individuals; require divestiture of shares or assets; and can order the implementation of compliance programs and corrective advertising.