An ex-franchisee of Advanced Hair Studio has been fined for providing the Australian Competition and Consumer Commission with false and misleading information.

Simon Charles Clarke and his company Narnia Investments Pty Ltd, which controlled the Advanced Hair Studio Hobart business, were convicted by the Federal Court in Hobart following criminal charges and fined $7,000 after pleading guilty to providing false or misleading information under the Trade Practices Act 1974.

The ACCC was investigating allegations for separate civil proceedings that Clarke, then national sales manager with Advanced Hair Studio Pty Ltd, had refused to release a consumer from his $15,500 hair replacement contract and refused to refund the consumer’s $1,800 deposit.

The Federal Court found Clarke and Narnia had contravened section 52 of the Act by misrepresenting to the consumer that he did not have the right to terminate his contract and obtain a refund of the deposit.

Justice Marshall said “The nature and circumstances of each offence make it a serious transgression for Narnia and Mr Clarke.”

Narnia and Clarke provided court-enforceable undertakings to the ACCC to pay the consumer the $5000 balance owing of $10,000 damages and refund the deposit; they must also pay the ACCC’s costs.

Clarke has been ordered to attend trade practices law compliance training.