This report provides legal advice to Munchkins R Us, a toy store chain, regarding the implications of two Federal Court judgments: ACCC v Woolworths Limited and ACCC v Coles Supermarkets Australia Pty Ltd. The advice focuses on the establishment of a 'Special Suppliers Club' and its compliance with the Australian Consumer Law (ACL). The report analyzes the court's findings on unconscionable conduct, emphasizing the importance of bargaining power, deliberate misconduct, and the totality of circumstances. It highlights the need for Munchkins R Us to avoid actions that could be deemed deceptive or misleading, referencing the ACL's sections 18 and 21. The report recommends that the company consider the judgments' implications when operating its new club to avoid penalties and ensure fair business practices, emphasizing that commercial brutality alone doesn't constitute unconscionable conduct. It offers insights into how these cases relate to the ASIC Act and the overall assessment of unconscionable conduct, recommending that Munchkins R Us seek further advice if needed.
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