On 7 September 2011, the ACCC announced that the Federal Court had granted orders to add NRM Corporation Pty Ltd and NRM Trading Pty Ltd (“NRM”) as respondents in the ACCC’s existing case against Advanced Medical Institute for alleged unconscionable conduct. The ACCC alleges the Advanced Medical Institute and NRM, who acquired the Advanced Medical Institute business in June 2011, engaged in unconscionable conduct. The ACCC also alleges that NRM breached the unfair contract terms provisions by entering into long-term agreements for the treatment of male sexual dysfunction. The ACCC has drawn attention to the terms that require an NRM patient wishing to terminate the contract to provide 30 days written notice and pay a number of fees including a fixed administration fee of 15% of the original contract price. This case is now the first court action under the new unfair contract terms provisions.
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ACCC joins NRM to Advanced Medical Institute proceedings, alleging unfair contract terms
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