Legal Advice on Consumer Matter - Advising Letter

Running Head: ADVICING LETTER
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LEGAL ADVICE ON CONSUMER
MATTER

ADVICING LETTER 1
[#Date#]
[#Your name#]
[#Your address#]
Ms Melissa Rogers
Legal Compliance Officer
Munchkins R Us
[#Address#]
Dear Ms Rogers
Re: The legal implications of ACCC v Woolworths Limited [2016] FCA 1472; ACCC v
Coles Supermarkets Australia Pty Ltd [2014] FCA 1405
In reference to the requirements for your recent establishment, the advice will be in
accordance with the lawful suggestions while examining the two current judgements of the
federal court. Munchkins R Us has started a current
‘Special Suppliers Club’ where the company is offering all the authorized persons for
supplying the goods and services to consolidate the club with the fee of $200 every month. It
is also providing other members with benefits involving a monthly e-newsletter with a yearly
Christmas party. The legal problems that can be raised in your case can be tackled by taking
the aid and explanations of the related cases which were also tried in federal courts of
Australia which inferred the consequences of unconscionability practiced by the party which
was mentioned under the Competition and Consumer Act 20101 by the Australian
Competition and Consumer Commission against Woolworths and Coles. It is then firstly,
explaining in the situation of ACCC v Woolworths Limited regarding Mind the Gap scheme
and design through which they had unfairly obtained payments from its suppliers2. There
must be a proper written contract between both the parties and also the conduct must be a
conscionable and careful one with highlighting all its essential clauses or else they may face
1 Competition and Consumer Act 2010
2 Gail Pearson, ‘Current Issues for Consumer Protection Law in Australia’, (2017
)
Consumer Law and Socioeconomic Development 199-208.
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ADVICING LETTER 2
the same problems as were faced in the case of Woolworths and also in the case of ACCC v
Coles3.
Similarly, in the case of ACCC v Coles, the unethical approach towards its suppliers was
identified along with the breach of the Australian Customer laws by misleading the
information, taking undue influence, use of unfair strategies and taking the advantage of its
superior bargaining positions, etc. to its suppliers regarding the savings and values.
Our guidance to you is as per the basis of these instructions:
Guidance:
Based on the situation given above for your Special Suppliers Club which is initiated by
Munchkins R Us the legal guidance regarding the lawful outcomes of both the cases with
their specific implications will be discussed and reviewed. The major key lawful
consequences of both the cases (ACCC v Woolworths and ACCC v Coles) are as follows:
Issue-1
In this case of ACCC v Woolworths4, they were convicted of many breaches related to the
safety issues of their products which were being sold in the supermarkets and other stores. It
was also found such products became very harmful to handle and were apparently defective
that created problems for many of its customers. By this, the court also conferred regarding
its wrong packaging and misleading products5. However, your company must maintain such a
responsibility related to the elements of the product safety and which is not affecting the
customers in an obstructive manner that can result in faulty conduct. It must ensure more
improved safety and improved versions of the products.
3 (2014) FCA 1405
4 (2016) FCA 1472
5 Malcolm Knox,
Supermarket Monsters: The Price of Coles and Woolworths’ Dominance
(Black Inc.,2015) 192.
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