Wealth seminars were promoted with false and misleading statements, according to ruling
The Federal Court has found DG Institute and its sole director, Dominique Grubisa, to be in violation of Australian Consumer Law.
The company was accused of making false or misleading statements in the promotion and sale of two educational programs called Real Estate Rescue (RER) and Master Wealth Control (MWC) in legal proceedings initiated by the Australian Competition and Consumer Commission (ACCC).
These statements were reportedly made between April 2017 to November 2022 through advertising seen in free seminars, online webinars, and videos featuring Grubisa herself. They were also featured in DG Institute’s website.
During the same period, over 3,000 individuals enrolled in the programs and paid fees ranging from $4,500 to $9,200.
In its ruling, the court determined that Grubisa played a direct role in the dissemination of promotional materials that misrepresented the true nature of the RER and MWC programs due to her involvement in “drafting, reviewing, editing and/or approving content for these materials.”
The court also found that Grubisa was aware of the misleading nature of her claims regarding the programs.
ACCC commenced legal action against Grubisa and DG Institute in December 2022 after receiving “a significant number of complaints” from students.
“This case is another reminder that businesses must ensure statements they make when promoting products or services to consumers are accurate and not misleading,” said ACCC Commissioner Liza Carver.
“It should also serve as a strong reminder to company directors that they may be held liable for their involvement in false or misleading representations made by the company in breach of the Australian Consumer Law.”
A separate hearing will determine the relief orders requested by the ACCC, which include injunctions, penalties, compensation for consumers, legal costs, and a specific order to disqualify Grubisa from managing corporations.
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