Australian Consumer Law

Stellar Pty Ltd is a company that owns and operates luxury five-star hotel 'Stellar'. In a widespread marketing campaign, it published advertisements in travel magazines and via free-to-air television commercials across Australia of its hotel room rates compared to those of other five-star hotels. The advertisements show its hotel room rates compared to those of another five-star hotel 'Golden Constellation' owned and operated by Golden Constellation Pty Ltd.Golden Constellation is located on the same street as Stellar. The advertisements use strike-through prices and text in different colours claiming that Stellar's room rates are half the price to those rates offered by Golden Constellation.

After an investigation, it has been discovered that Stellar is comparing an offer for its own standard room with an offer for a luxury room at Golden Constellation.

Using relevant legal principles, answer the following questions:

1.Is Golden Constellation Pty Ltd allowed to bring an action against Stellar Pty Ltd?

2.Discuss whether Stellar Pty Ltd has breached section 18 of the Australian Consumer Law and what remedies may be available.