In December 2016, the Federal Court fined the manufacturers of Nurofen, Reckitt Benckiser (Australia) Pty Ltd (Reckitt Benckiser), $6 million for misleading their customers about their painkiller range after the ACCC appealed the Court's original $1.7 million penalty.

Refer tohttps://www.accc.gov.au/media-release/full-federal-court-orders-6-million-penalty-for-nurofen-specific-pain-products

The ACCC was concerned with Reckitt Benckiser's misleading advertising practices. A business can engage in misleading advertising when they make statements that are incorrect or likely to be a false impression. In this case, Reckitt Benckiser stated that their product was capable of targeting and alleviating specific types of pain (which it could not do).

Importantly, a business does need to intend to mislead a customer. Rather, it is the overall impression the conduct leaves on a consumer's mind.

Question 1.

1. Discuss other misleading claims which are regarded as serious in terms of the law
2. If a business has engaged in misleading conduct, you can lodge a complaint with the ACCC. The regulator has a wide variety of powers which it can enforce against a business. What powers does the ACCC have to enforce against a business for misleading customers?
3. What possible defences are manufacturers and suppliers likely to raise?