In proceedings alleging contraventions under the Australian Consumer Law (ACL), such as unconscionable conduct or false or misleading representations, attention is often focused on the actions of the primary contravening company that engaged in the conduct. However, increasingly, courts are shining a light on the role of other companies in the same corporate group, where these companies have common directors and have contributed funds, provided security for loans or otherwise taken positive steps to assist the primary contravener.

Practitioners should be conscious that these companies may be held to be “knowingly concerned” in the conduct, and therefore liable to pay significant penalties or compensation to victims, even if their involvement is limited to a few acts of assistance.

See Corporate groups and knowing involvement.