Australian Competition and Consumer Commission v Magnamail Pty Ltd

[2026] FCA 969

Federal Court of Australia

Built by Barristers,
For Australian Law.

1. Corporations
1. trade and commerce
1. alleged false, misleading and deceptive conduct concerning notification of prize conducted as part of trade promotions by direct mail-order catalogue business
1. alleged contraventions of sections 18, 29(1)(b), 29(1)(g), 29(1)(m) and 34 Australian Consumer Law

Where promotional materials for a pre-drawn prize promotion, viewed as a whole, convey that a prize draw has occurred and the customer 'could' win a major prize (including through a second chance draw), the dominant message is one of chance rather than a present right to claim a major prize, and the materials are not misleading under s 18 ACL on the facts.
Where entry into a promotional prize draw is inseparable from the purchase of goods (the draw cannot be entered without purchasing), the transaction is properly characterised as a supply of goods together with services under s 11(c) ACL, and the prize draw component is not 'services' within ss 29(1)(b), 29(1)(g) or 34 ACL — it is impermissible to artificially disaggregate the supply into component parts.
For accessorial liability under s 224(1)(e) ACL, mere knowledge of facts from which falsity might be deduced or inferred is insufficient; actual knowledge that the representations were false is required, and reliance on external legal advice that promotional materials were legally compliant is relevant to negating such knowledge.