Australia business law case study

NutroCo Pty Ltd have developed a new type of chocolate shake which they claim causes significant weight loss if used 3 times a day for 4 weeks. The chocolate shake is called LiteShake and is advertised on a number of morning television shows and through social media campaigns including on Facebook. The products are available for purchase through local pharmacies and supermarkets.

The advertising campaigns state that LiteShake has been scientifically formulated and tested to guarantee weight loss benefits. The advertising campaign includes a number of customers who promote the products and talk about their weight loss experience after consuming LiteShake. Before and after photos are incorporated into the advertising with all customers showing extreme weight loss after just 4 weeks. It turns out that these customers are in fact paid actors.

Peter, purchases LiteShake from his local pharmacy, Pharma Co. and begins consuming the product as directed. After 4 weeks, Peter has noticed he has actually gained 10 kilos rather than lost it. A number of other customers also begin to make complaints after gaining considerable weight from consuming the product.

Peter seeks your advice as to what grounds, if any, can he bring a claim against NutroCo and/or Pharma Co.?

You should include reference to any relevant legislation and common law cases in your answer.