The Federal Court has declared the director of a company that makes nappies was “knowingly concerned” in a misleading advertising campaign involving the biodegradability of the company’s products.
The court found Charishma Seneviratne, a director of SeNevens International, approved the company’s claim that the whole of its Safeties Nature Nappy product was biodegradable, when she knew that was not the case.
The Federal Court had previously declared that the company had engaged in false or misleading conduct by making representations that the Safeties Nature Nappy was “100% biodegradeable” but this new case takes particular aim as Senevirante.
Justice Shane Marshall imposed a five year injunction on Seneviratne, stopping her from being party to any nappy biodegradability claims without first having received independent scientific testing of the product.
ACCC chairman Graeme Samuel said the case serves to emphasise that directors cannot hide behind their companies.
“If a director or employee is knowingly concerned in their company’s misleading conduct, then those individuals also risk personal fines and injunctions.”
Seneviratne and SeNevens International, which has changed its name and now trades as Eco Quest, were ordered to pay the ACCC’s costs.
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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.
