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Posted 22/07/2024 3:50pm

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Misleading claims cost,
Penalties and redress due,
Truth in business sought.

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Salesforce

DG Institute slapped with $5m penalty for misleading consumers

The Federal Court has ordered Master Wealth Control Pty Ltd (DG Institute) to pay $5 million in penalties for making false or misleading representations to consumers in the promotion and sale of two education programs, Real Estate Rescue (RER) and Master Wealth Control (MWC). The court has also ordered DG Institute to pay consumer redress totalling $14.7 million to students enrolled in the MWC program.

Dominique Grubisa, DG Institute's sole director, has been ordered to pay $1 million in penalties and is disqualified from managing corporations for five years. The DG Institute offers courses and mentoring programs to consumers relating to property and business investment, including the RER and MWC programs.

The redress orders require DG Institute to refund course fees paid by more than 2100 students who enrolled in the MWC program between April 2017 and November 2022. The company is also required to contact consumers who may be eligible for redress and to post information about the redress scheme on its website and Facebook pages.

The Court ordered injunctions restraining DG Institute and its officers, and Grubisa, from making similar or the same representations for a period of five years. DG Institute and Grubisa are also ordered to pay the ACCC costs of the proceedings.

"These orders underscore the importance for businesses and company directors to ensure statements made to consumers promoting their products and services are accurate and not misleading," ACCC Commissioner Liza Carver said.

"The substantial consumer redress orders, the penalties imposed and the five year disqualification order against Ms Grubisa reflect the serious nature of the conduct, and clearly demonstrate the consequences of making false claims when promoting goods or services to consumers."

The ACCC commenced legal action against DG Institute and Grubisa in December 2022. Between 2017 and 2022, over a thousand students enrolled in the programs, each paying between $4,500 and $9,200 to participate. On 9 April, the Federal Court found the company had made false or misleading representations to consumers in the promotion and sale of the RER and MWC programs in contravention of the Australian Consumer Law.

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