AUSTRALIA Trends and Developments Contributed by: Greg Williams, Alexandra Rose, Sheena McKie and Suhaasini Jeyasothy, Clayton Utz
contained five defects that created mechanical dif - ficulties. The Federal Court determined that Ms Capic is enti - tled to 30% reduction in value damages, and estab - lished a methodology for assessing group member claims against a matrix, having regard to the defects as found. Sample group members have been identi - fied, against which the quantification of those dam - ages will occur (to be heard in September 2026). In addition, the Court has confirmed that, where a sec - ond-hand purchaser did not directly buy the product from the initial purchaser but instead purchased the product from someone else who engaged in trade or commerce by selling the product (eg, a used car dealer), that second-hand purchaser has no right to reduction in value damages. This action, and Williams v Toyota Motor Corporation Australia , are continuing. Outlook Despite global economic uncertainty, class actions continue to be filed in Australia at a consistent rate. Australia has a class action regime with very low bar - riers to entry, and is well-supported by active litigation funders and the availability (in Victoria) of contingency fees for plaintiff class action lawyers.
In recent years, consumer class actions have increas - ingly focussed on breach of a consumer guarantee (including the consumer guarantee of acceptable quality and fitness for purpose), including increased risk or propensity claims without any actual injury hav - ing been suffered. For instance, a novel class action claiming breach of consumer guarantees and mis - leading or deceptive conduct has been commenced against a healthcare company concerning the sale of non-prescription medicines containing phenylephrine, which the applicants claim were ineffective at relieving symptoms of cold and flu. As a result, companies doing business in Australia should expect ongoing heightened scrutiny and enforcement activity from the ACCC across the full spectrum of competition, consumer protection and product safety issues. The same is true for companies operating in the thera - peutic goods and life sciences sectors, with the TGA increasingly actively monitoring, auditing and taking enforcement action in respect of alleged breaches.
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