Listed furniture chain Nick Scali has launched Federal Court action against discount rival Super A-Mart, alleging misleading and deceptive conduct under the Trade Practices Act.
The case involves the area of “passing off”, which is designed to prevent one company associating its goods with that off another company.
According to court documents, Nick Scali is claiming that Super A-Mart breached sections 52 and 53 of the Trade Practices Act, which deal with misleading and deceptive conduct and false and misleading representations respectively.
The conduct in question relates to the promotion of leather lounge suites that Super A-Mart had allegedly promoted as being similar to a Nick Scali product, but far cheaper.
Neither Nick Scali nor Super A-Mart would comment while the case is ongoing.
In the latest court skirmish, Super A-Mart unsuccessfully tried to block evidence submitted by Nick Scali’s legal team that detailed alleged conversations between witnesses and Super A-Mart sales representatives.
Justice David Yates ruled the evidence was admissible on 19 October, and is now considering his verdict in the main case.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
