The Internet and the Challenge of the Enforceability of Judgments: A Recent Australian Case

In a recent Internet-related case, Australian Competition and Consumer Commission v. Chen [2003] FCA 897 (27 August 2003), the Federal Court of Australia recently considered whether it should issue an injunction to restrain the conduct of a US resident, given that there was apparently no mechanism available for the enforcement or registration of the injunction in the US courts. The Australian Competition and Consumer Commission had applied for relief against the respondent, Richard Chen, for operating an unauthorized web site which imitated the Sydney Opera House in contravention of Australia's Trade Practices Act, 1952 (TPA).   The imitation site purported to provide a facility for booking tickets at the venue. Despite doubt as to enforceability of its order, the Court issued a declaration that the respondent's activities had contravened the TPA.   In the Court's view, not only would the declaration mark its disapproval of the respondent's conduct, it could also be useful in informing consumers of the dangers posed by the respondent's actions. Concerns about enforceability, said the Court, had to be weighed against the increasing problems in the international community with cross-border fraud and misleading conduct, particularly through the Internet, and the need to establish mechanisms for international co-operation to discourage such activities.   In the view of the Court, foreign regulatory authorities, particularly the US Federal Trade Commission, were more likely to co-operate in protecting Australian consumers from cross-border fraud if the Court made a formal order. This case is notable for the Australian court's acceptance that the reality of the Internet should shape its perspective on the traditional norms of international enforceability of judgments. For the full reasons for judgment, visit: http://www.austlii.edu.au/au/cases/cth/federal_ct/2003/897.html. Summary by: Nick Wong