Posted: September 27th, 2016

Discuss the ACCC’s possible causes of action (and the likely outcome) and appropriate remedies, if successful.

Parnell Pty Limited (Parnell) is an Australian corporation. It manufactures a weight loss product called, “Less Is More” (LIM). The product in question contains Kohimarama, an exotic fruit from New Zealand that Parnell claims assists in aiding weight loss by burning fat quicker and curbing appetite. On social media, Parnell has called it a “revolutionary fat buster” and the “most exciting breakthrough in natural weight loss today”. Parnell makes LIM from Kohimarama fruits imported from New Zealand which it processes and mixes in Perth using a top-secret formula. Parnell sells LIM online or by telephone orders only. Recently, Parnell put the following advertisement in several national and local newspapers to promote LIM: The most talked about natural weight loss product – “Less Is More” (LIM) – is finally here! LIM contains an active compound derived from Kohimarama, an exotic fruit from New Zealand and clinically proven to inhibit the absorption of fat and prevent weight gain. The active compound in LIM aids in weight loss in two ways – helping to block fat by inhibiting a key enzyme that your body uses to turn glucose into fat and acting as an appetite suppressant. Clinical studies have demonstrated its effectiveness in tackling weight gain, suppressing the appetite, reducing food cravings and reinforcing the immune system. LIM is also 100% natural – it will help you lose weight with ‘no exercise, no diet and no effort’. Parnell guarantees that if you use LIM as directed, within 4 to 6 weeks, you will lose all the weight you want without exercising or dieting. LIM is an Australian product. According to the Weight-No-More Association (WENMA), it is the best weight loss product on the market. Be among the first 20 customers and receive a free digital bathroom scale worth $50.00. Real People, Real Results “It’s simply amazing. I can’t believe how quickly I saw results – even after the first week. I can’t thank you enough – I have my fit body back.” ~ Sumo, Perth “I couldn’t be any happier with the results – I lost over 10 kilos in 4 weeks – no special diet, no intense exercise.” ~ Fatima, Brisbane 2 In smaller print, the advertisement referred readers to Parnell’s Facebook and website for the full terms and conditions of its offer. The terms and conditions stated, inter alia, that customers should maintain a healthy diet and exercise regularly to obtain the best results. The free digital bathroom scale was only available for customers who ordered a minimum of a year’s supply of LIM. The exciting new br The Australian Competition and Consumer Commission (ACCC) is investigating possible legal action against Parnell under the Australian Consumer Law (ACL). The ACCC has discovered that there is no scientific evidence to support Parnell’s claims regarding LIM’s effectiveness in helping weight loss and suppressing appetite without regular exercise and a healthy diet. Further, WENMA does not exist. Discuss the ACCC’s possible causes of action (and the likely outcome) and appropriate remedies, if successful.