Savalot Shopping Centre Ltd ("SSC") recently opened a new store in your city. SSC is a membership warehouse club: - this means customers must become a member before they can shop at SSC. As a new business in the area, SSC was keen to attract as many new members as possible so it started an advertising campaign.

The advertising campaign included a catalogue with the following wording at the top of the front page in large bold font:

Do you want to save $$$$ you know you do!!!!!!

Huge savings for all new members

Get a HUGE 25% off all products if you join right now! Today in fact! 30 todays only!

Memberships will go fast, first in best dressed. Be late be disappointed - memberships are limited

At the very bottom of the advertisement, there is additional wording in very small print which states:

"The 25% price reduction for new members only applies to the first $150.00 of items purchased. Fruit and vegetables excluded."

Dess saw the advertisement flyer and picked it up. Dess thought he could save money by buying bulk supplies for his large family, however, he basically stopped reading at 25% discount and didn't notice the fine print.

Dess didn't want to miss out on the limited memberships, so he went to SSC the next day and paid a $10 monthly membership fee, signed some terms and conditions which he briefly glanced at, got his membership card and started shopping. Dess filled five trollies with bulk household items worth about $1200.00.

At the checkout, Dess is told that the 25% discount only applies to the first $100.00 of items purchased. Dess complained and was referred to Miss Strict, a "customer care representative".

Miss Strict showed Dess the fine print in the advertisement. Dess got very angry and decided not to buy anything. Dess then asked Miss Strict to cancel his membership. However, Miss Strict reminded Dess he signed the terms and conditions which included the following term:

1. The Customer is not permitted to cancel the membership before the expiry of 12 months unless the customer pays a cancellation fee of $150.00.

Dess attempted to negotiate with Miss Strict arguing it was just ridiculous to have such small printing and this was an entirely unacceptable to charge $150 to cancel a $10 membership However, Miss Strict told Dess:

"This is your fault, you should have read the advertisement more carefully, and you indicated you read the terms and conditions by ticking this box and signing the terms and conditions. I think it is unreasonable you think you have grounds to complain."

Dess stalks out of SSC and decided to lodge a complaint with the Australian Competition and Consumer Commission ("the ACCC").

Required

Part A

Using the IRAC legal problem solving process give your conclusion on whether the ACCC have any grounds to start legal proceedings against "SSC"?

Please limit your response to a consideration of the general protections under the Australian Consumer Law.

Part B

Using the IRAC legal problem solving process give your conclusion on whether the ACCC have any grounds to start legal proceedings against "SSC" if Dess had purchased food for use in his caf?