On 2 May 2017, the Federal Court of Australia (Court) penalised three online e-cigarette retailers for falsely claiming that their products do not contain harmful carcinogens and toxins. In separate proceedings, the Court found that these retailers - The Joystick Company Pty Ltd (Joystick), Social-Lites Pty Ltd (Social-Lites) and Elusion Australia Limited (in liquidation) (Elusion) - contravened sections 18, 29(1)(a) and 33 of the Australian Consumer Law (ACL) by making false and misleading representations as to the composition, nature and characteristics of the products. The Court also found that Joystick contravened section 29(1)(g) of the ACL by falsely claiming that Joystick products contained flavours that had received approval by the Australian Competition and Consumer Commission (ACCC). In relation to the section 29 and 33 breaches, the Court ordered the following pecuniary penalties under section 224 of the ACL: A$50,000 to be paid by Joystick and A$10,000 to be paid by its director; A$50,000 to be paid by Social-Lites and A$10,000 to be paid by its director; and A$40,000 to be paid by Elusion and A$15,000 to be paid by its director. Social-Lites and Elusion were also restrained for three years from making representations that e-cigarette products do not contain harmful or cancer-causing chemicals or carcinogens. In addition to the pecuniary penalties, the company directors were ordered to attend training on obligations under the ACL, and to contribute to the ACCC's court costs. The cases serve as a reminder that directors can be held personally liable for contraventions of the ACL, and that foreign companies must comply with the ACL when advertising and selling products to Australian consumers online. The ACCC media release is available here. The Federal Court judgments are available here (Joystick), here (Social-Lites) and here (Elusion). For more information, please contact Anne-Marie Allgrove, Toby Patten, Matthew Dempsey, Grace Loukides or Stephanie Szkilnik.