In the recent case of ASIC v GE Capital Finance [2014] FCA 701, the Federal Court ordered consumer credit provider GE Capital Finance Australia pay a penalty of $1.5 million for making false or misleading representations to more than 700,000 of its credit card customers.

The court found that between 5 January and 27 May 2012, GE Capital told certain credit card customers that to activate their credit card, or apply for or obtain an increased credit limit, the customer also had to consent to receiving invitations to apply for credit limit increases.

These representations were false or misleading because GE Capital did not require such consent for credit cards to be activated or for credit limits to be applied for or increased.