In Australian Competition and Consumer Commission v Master Wealth Control Pty Ltd [2024] FCA 344 the Federal Court of Australia decided that DG Institute breached the Australian Consumer Law by making false or misleading representations to consumers about two courses and mentoring programs relating to property and business investment, including strategies for asset protection.

UPDATE: In Australian Competition and Consumer Commission v Master Wealth Control Pty Ltd (Penalty) [2024] FCA 795 on 19 July 2024 the Federal Court made orders against MWC and Ms Grubisa in proceedings brought by the ACCC, including orders that Ms Grubisa pay $1 million in penalties and be disqualified from managing corporations for five years.  Master Wealth Control Pty Ltd (DG Institute) was ordered to pay $5 million in pecuniary penalties and to pay consumer redress totalling $14.7 million to students enrolled in the MWC program.

The Court found that sole Director Dominique Grubisa was knowingly concerned in DG Institute’s contraventions through her role in making the statements on video in promotional materials and program materials, and in drafting, reviewing, editing and/or approving content for these materials. The Court also found that Ms Grubisa knew that the representations she made about both programs were in fact false and misleading.

The case considered representations by two programs and decided that:

• the Real Estate Rescue (RER) program had a benefit which it did not have, being the benefit of assisting distressed homeowners to retain some of the value of the equity in their properties in the event of a sale when they would otherwise lose all of the value of their equity
• the Master Wealth Control (MWC) program had a benefit which it did not have, being the benefit of equipping consumers with a strategy that was effective to protect all of their assets in a way that would provide complete protection from creditors .

In the financial years ended 30 June 2018 to 30 June 2021, DG Institute earned revenue from the RER program in the total amount of $8,876,025.

During the financial years ended 30 June 2018 to 30 June 2021, DG Institute earned revenue attributable to the MWC program in the total amount of $9,223,457.

Penalties are to be decided.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.