Court sides with ASIC regarding $30M fine imposed on Mayfair 101 Group companies
The Full Federal Court has dismissed an appeal by the Mayfair 101 Group companies seeking to overturn the findings of misleading or deceptive advertising, and a penalty of $30 million that the Court imposed on the companies after an ASIC action, other than in respect of an injunction against the companies restraining the companies from using certain specified phrases in their advertising, marketing or promotion which the Full Court has set aside.
In March 2021, the Federal Court found Australian Income Solutions (previously Mayfair Wealth Partners), M101 Holdings, M101 Nominees and Online Investments (trading as Mayfair 101) engaged in misleading or deceptive conduct and made false or misleading representations when promoting the M+ and M Core Fixed Income Notes. In December 2021, the Court awarded penalties totalling $30 million against the Mayfair companies.
The Full Court set aside orders made on 21 January 2022 restraining the Mayfair companies from using certain specified phrases such as ‘bank deposit’ and ‘term deposit’ in their advertising, marketing or promotion on the basis that this injunction was ‘too broad and unworkable’.
The appeal was otherwise dismissed and the Full Court ordered the Mayfair companies to pay ASIC’s costs of the appeal.