The Federal Court has imposed penalties totalling $85,000 against SMS Global Pty Ltd (SMS Global) and its Director, Carl Krumins for misleading consumers by falsely representing that it was endorsed by the Government.
SMS Global displayed on its website the Australian Government ESA logo containing the words “Australian Government Endorsed supplier” and falsely represented in a brochure distributed at the 2010 CeBIT trade fair that was “a Government endorsed specialist”.
The Court made declarations relating to SMS Global and Mr Krimins in respect of not only the government endorsement but also industry experience representations. The Court also made an injunction restraining SMS Global from in future using the ESA logo and claiming a government endorsement that it does not have.
SMS Global was ordered to publish within 21 days a corrective notice on its website for a continuous 90 day period detailing the declarations made in respect of it and Mr Krumins.
The company was ordered to maintain a corporate compliance program until 30 April 2014.