Imagine Un Ltd subsidiary faces ACCC

A subsidiary of formerly Perth-based essential services advisers Imagine Un Ltd, Imagine Essential Services Ltd, will face legal proceedings issued by the Australian Competition and Consumer Commission for alleged contraventions of the Trade Practices Act.

According to the ACCC the company sold licences to its customers involving agreements Imagine claimed to have negotiated with essential services suppliers.

Under the system, licensees would approach businesses with a view to having them take on the benefit of Imagine's agreements to obtain the claimed savings.

The ACCC will allege that Imagine, and its former marketing company The Triumphant Group Ltd, made false representations regarding the licensees' earning ability, the existance of those agreements and the existence of and membership to two industry bodies.

The matter will go through a directions hearing on July 27.

The full text of an ACCC announcement is pasted below

The Australian Competition and Consumer Commission has instituted legal proceedings against Imagine Essential Services Limited and its former marketing company, The Triumphant Group Pty Ltd, for allegedly contravening the Trade Practices Act 1974.

The ACCC also has instituted proceedings against Imagine's former CEO and director, Mr Richard Evans.*

Imagine sold licences to operate a system involving agreements which Imagine claimed to have negotiated with essential service suppliers. It is alleged Imagine and Triumphant Events represented these agreements could provide small to medium businesses savings off their bills for their essential services such as electricity, gas, water and telephone. Under Imagine's system, licensees would approach businesses with a view to having them take the benefit of Imagine's agreements to obtain the claimed savings (earning commissions when businesses signed up).

The ACCC alleges that in connection with the sale of Imagine licences, Imagine and Triumphant Events, made written and verbal representations that were false and misleading. It is alleged Mr Evans was involved in Imagine's contraventions of the Act.

In particular, the ACCC alleges that Imagine and Triumphant Events made false and misleading representations with regard to:

• the earning ability of Imagine licensees
• the agreements that Imagine had with accountants and suppliers of essential services, and
• the existence of, and membership to, the Essential Services Advisory Association and the Telecommunications Technology Industry Advisory Association.

The ACCC is seeking:

• declarations that the conduct of Imagine and Triumphant Events contravened the Act and that Mr Evans aided, abetted, counselled or procured and/or was knowingly concerned in the alleged contravening conduct by Imagine
• injunctions restraining Imagine, Mr Evans, and Triumphant Events from engaging in the same or similar offending conduct
• a publication order for corrective advertising
• orders that Imagine and Triumphant Events each implement a TPA compliance program
• findings of fact, and
• an order that the parties pay the ACCC's costs of the proceeding.

The matter has been listed for a directions hearing before Justice Gordon on 27 July 2007.

*Mr Richard Evans, formerly of Imagine, should not be confused with the Chief Executive Officer of the Franchise Council of Australia Limited, also Mr Richard Evans.