Endorsement message failure for SMS Global
SMS Global has been fined $85,000 for misleading use of the Australian Government ESA logo
SMS and MMS service provider SMS Global Pty Ltd has been fined $85,000 for misuse of the Australian Government ESA logo that states the company to be a supplier endorsed by the local Government.
The Australian Competition and Consumer Commission found that the company was guilty of false representation by using the logo on its website and stating that the company was “a Government endorsed specialist” on a brochure distributed at the 2010 CeBIT trade fair.
Justice Murphy of the Federal Court found that Carl Krumins, director of SMS Global was “being, at least to a degree, deliberately misleading.”
Rod Rims, chairman of ACCC said in a press release: “The size of the penalty imposed for false claims of government endorsement is a clear signal that such conduct is viewed seriously by the Court”.
An injunction has also been issued restraining SMS Global from future use of the ESA logo and claiming a government endorsement that it does not have.