The Full Federal Court has dismissed an appeal by the Mayfair 101 Group companies seeking to overturn the findings of misleading or deceptive advertising, and a penalty of $30 million that the Court imposed on the companies after ob体育 action, other than in respect of an injunction against the companies restraining the companies from using certain specified phrases in their advertising, marketing or promotion which the Full Court has set aside.
ob体育 Deputy Chair Sarah Court said 鈥榦b体育 pursued this case through the Federal Court because of the importance of accurate advertising of financial products. We were concerned that the advertising by the Mayfair 101 Group represented that their products were of a similar risk profile to bank term deposits, when that was not the case.
鈥楾he decision to uphold the original findings of the Federal Court, and ob体育鈥檚 case that the Mayfair 101 Group鈥檚 advertising was misleading or deceptive, is a message to industry that financial products need to be accurately advertised or companies may risk substantial penalties.鈥�
In March 2021, the Federal Court found Australian Income Solutions (previously Mayfair Wealth Partners), M101 Holdings, M101 Nominees and Online Investments (trading as Mayfair 101) engaged in misleading or deceptive conduct and made false or misleading representations when promoting the M+ and M Core Fixed Income Notes (21-055MR). In December 2021, the Court awarded penalties totalling $30 million against the Mayfair companies (21-364MR).
The Full Court set aside orders made on 21 January 2022 restraining the Mayfair companies from using certain specified phrases such as 鈥榖ank deposit鈥� and 鈥榯erm deposit鈥� in their advertising, marketing or promotion on the basis that this injunction was 鈥榯oo broad and unworkable鈥�.
The appeal was otherwise dismissed and the Full Court ordered the Mayfair companies to pay ob体育鈥檚 costs of the appeal.
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Editor's note:
On 3 November 2022, Australian Income Solutions (previously Mayfair Wealth Partners), M101 Holdings and Online Investments filed an application for special leave to appeal to the High Court of Australia in relation to the Full Federal Court鈥檚 decision handed down on 10 October 2022.
Editor's note 2:聽
On 3 March 2023, the High Court listed the special leave hearing for Friday 21 April 2023, in Canberra.
Editor's note 3:
On 21 April 2023, following a hearing in Canberra, the High Court dismissed the special leave application by Australian Income Solutions (previously Mayfair Wealth Partners), M101 Holdings and Online Investments.