By Leonie Lamont
TRUE, the form addressed to small businesses, asking them to update their business details, did have the Australian flag printed on it. And there was reference to a registry held by ''Industry and Commerce''.
But surely, the Federal Court heard yesterday, the envelopes in which the forms had to be returned - to a pre-printed address in Spain - indicated this was not an initiative of the Australian government.
''The stamp [which the businesses had to buy] to get it to Spain was different … than getting a stamp to get it to Canberra, or Sydney or Melbourne,'' said Lachlan Gyles, SC, representing European City Guide SL.
''We say the only people that would be misled by this form are those who have not read the form carefully.
''Section 52 … was not intended for people who fail to take care of their own interests''.
The Australian Competition and Consumer Commission has alleged thousands of businesses have been sent the forms and an invitation to go on ECG's website since 2006. Early versions of the forms said the ''updating was cost free'', though in the small print it said businesses would be billed between $1200 and $1600 a year, for three years - and forever if they didn't cancel.
Simon White, SC, for the commission, said witnesses ''believed these documents had been sent by and had the authority of the Australian government''. The small print fell well short of disabusing them of this notion, he said.
As to the website, it was a ''dud'', more the product of a fourth grade child than a supposed ''efficient and comprehensive'' search of Australian industry and commerce. He said a search on the words ''fashion and Melbourne'' threw up two results: Louise Hair Fashion and Chatswood Dive and Marine Charter. ''In the Yellow Pages you get over 300 boutiques in the Melbourne area, none of which include Chatswood Dive and Marine.''
Similarly, a search on ''restaurants and Melbourne'' threw up one listing: Taco Bill.
Traffic to the site was minimal - Mr White said it ranged from only 50 - 250 hits a day worldwide.
The first of nine witnesses for the commission, Janet Apostolopoulos, said she and her husband thought the form, addressed to their business Down South Mobile Dog Wash in South Australia, was from the government. She told the court she noticed nothing about the return address being in Spain, until she received invoices asking for payment.
''We got a shock; we don't have any dealings with Spain.''
She agreed she had told her accountant it was her fault that she had not read the form closely.
The commission is seeking an order from the Federal Court to stop the company sending out misleading forms. The hearing continues.