The Federal Court has ruled in favor of Magnamail Pty Ltd, dismissing the Australian Competition and Consumer Commission's (ACCC) case that alleged the company made false or misleading representations in its mail order catalogue promotions.

Between May 2022 and July 2023, Magnamail distributed promotional materials to consumers, which included letters, catalogues, and scratch cards related to 12 'pre-draw' prize promotions. The ACCC claimed that these materials misled consumers into believing they were eligible for major prizes, including cash up to $25,000, despite the draws having occurred before the consumers received the promotions.

However, the Court found that the promotional materials did not contain the alleged false and misleading representations. Consequently, the ACCC's case against Magnamail's parent company, Direct Group Pty Ltd, was also dismissed, as the ACCC had claimed Direct Group was knowingly involved in Magnamail's conduct.

Following the Court's judgment, the ACCC is currently reviewing its options. Magnamail, which ceased its pre-draw promotions in 2023 after the ACCC's investigation began, is a direct mail order business operating in Australia and New Zealand, selling various merchandise through catalogues.