Section 154 — Competition and Consumer Act 2010: Offering rebates, gifts, prizes etc.

(1) A person commits an offence if: (a) the person, in trade or commerce, offers any rebate, gift, prize or other free item; and (b) the offer is connected with: (i) the supply or possible supply of goods or services; or (ii) the promotion by any means of the supply or use of goods or services; or (iii) the sale or grant, or the possible sale or grant, of an interest in land; or (iv) the promotion by any means of the sale or grant of an interest in land; and (c) the offer is made with the intention of not providing the rebate, gift, prize or other free item, or of not providing it as offered. (2) A person commits an offence if: (a) the person, in trade or commerce, offers any rebate, gift, prize or other free item; and (b) the offer is connected with: (i) the supply or possible supply of goods or services; or (ii) the promotion by any means of the supply or use of goods or services; or (iii) the sale or grant, or the possible sale or grant, of an interest in land; or (iv) the promotion by any means of the sale or grant of an interest in land; and (c) the person fails to provide the rebate, gift, prize or other free item, in accordance with the offer, within the time specified in the offer or (if no such time is specified) within a reasonable time after making the offer. (3) Subsection (2) does not apply if: (a) the person’s failure to provide the rebate, gift, prize or other free item in accordance with the offer was due to the act or omission of another person, or to some other cause beyond the person’s control; and (b) the person took reasonable precautions and exercised due diligence to avoid the failure. (4) Subsection (2) does not apply to an offer that the person makes to another person if: (a) the person offers to the other person a different rebate, gift, prize or other free item as a replacement; and (b) the other person agrees to receive the different rebate, gift, prize or other free item. (5) Strict liability applies to subsections (1)(b) and (2)(b). Penalty (5A) An offence against subsection (1) or (2) committed by a body corporate is punishable on conviction by a fine of not more than the greater of the following: (a) $100,000,000; (b) if the court can determine the value of the benefit that the body corporate, and any body corporate related to the body corporate, have obtained directly or indirectly and that is reasonably attributable to the commission of the offence—3 times the value of that benefit; (c) if the court cannot determine the value of that benefit—30% of the body corporate’s adjusted turnover during the breach turnover period for the offence. (5B) An offence against subsection (1) or (2) committed by a person other than a body corporate is punishable on conviction by a fine of not more than $2,500,000. Other (6) This section does not affect the application of any other provision of this Part in relation to the supply or acquisition, or the possible supply or acquisition, of interests in land.