'In' trade or commerce
10 The relevant conduct is the making by Ms Newkirk, on her own behalf and on behalf of the fourth respondent ('PETA') (FASC par 132(b)) of the Mulesing Cruelty Representation and the Viable Alternatives Representation on a television program devoted to current affairs. The FASC does not specify, or collect in a single place, the facts which are relied upon in support of the contention that this conduct is 'in' trade or commerce. However, the FASC alleges that PETA carries on business in Australia, and that its business includes the following (FASC par 31);
(a) undertaking campaigns about business activities or goods which involve the use of or which affect animals;
(b) raising funds by way of contributions and donations from members of the public for PETA campaigns, inter alia, by generating publicity for its campaigns and promoting any success achieved by such campaigns;
(c) promoting the sale of, offering for sale and selling clothing and merchandise;
(d) operating websites for the purposes of its business; and
(e) investing in companies including companies which are engaged in the business of selling Australian Wool Garments such as the Retailers known as Nordstrom, Liz Claiborne, Ann Taylor, American Eagle, Talbot's, Jones Apparel, Limited Brands and H & M.
11 In addition, the particulars letter contains the following further information in relation to PETA's business, and the 60 Minutes program:
'5. In relation to PETA campaigns generally, on the 60 Minutes program broadcast on 21 November 2004 in Australia, Newkirk said:
We stopped NASA from sending monkeys into space. We stopped General Motors from crash testing on animals. We stopped about 550 cosmetics companies from testing in rabbits' eyes. They all said we wouldn't succeed. But we're tenacious and we'll give it a go.
…
8. In relation to the PETA Australian Wool Campaign, on 11 August 2004 Newkirk forwarded by facsimile transmission to Prime Minister Howard in Australia a letter on PETA letter head containing the following statements:
We have written to you several times over the last two years concerning the extreme suffering of Australian Merino sheep as result [sic] of mulesing and live export, and we have yet to receive an even remotely reasonable response. Our members now demand that we move forward on this issue - that we take steps similar to those used in our successful efforts against other industries in which cruelty to animals has run rampant, such as in the Indian leather trade, which, according to CNN, experienced an estimated $68 million in lost sales as a result of our campaign.
We are about to launch a worldwide campaign against the Australian Merino Wool industry, which will continue until your government takes action to end mulesing and live exports. To that end, we will announce an international boycott of Australian wool in October.
…
And or course, we will abandon the campaign if you are willing to pledge to end mulesing and live exports.
In case you have any doubts about the cruelty of these practices, we enclose additional copies of the video and a report containing references to published scientific studies on the pain and suffering caused by mulesing and live exports.
…
14. An integral part of any PETA campaign is a media campaign including the organisation of and participation in media interviews. In a PETA guide it is said:
PETA uses public education, litigation, research & investigation, media campaigns and grassroots organising to accomplish its goal of protecting all animals from exploitation and abuse.
15. PETA reports on the extent to which its campaigns receive media coverage. One of the primary responsibilities and duties of a PETA campaigner is to: Work with members of the media to promote campaigns and learn to conduct media interviews and to: Send out news releases, make follow-up and pitch calls to the media, and work to keep PETA's campaigns in the media spotlight.
22. In the course of the October Australian media interviews, the Mulesing Cruelty and Viable Alternatives Representations were made, and specific reference was made to the PETA website which contained the equivalent representations, namely savethesheep.com.
23. The savethesheep.com website contains a direct link to the "Alternatives to Wool" page and the "Free Shopping Guide" page. Each of those pages links to various merchandise which can be purchased from PETA, PETA's winter goods range, or from an entity which pays PETA a percentage of sales achieved via the links. Furthermore, each of the pages contains links to pages which promote donations to PETA, particularly in the context of PETA promoting its "victories.
…
24. Hence, promotion of the PETA websites constituted promotion of the representations contained thereon, of the merchandising sales available therefrom, of the donation pages thereon, and generally promotion of the business activities of PETA.
32. Newkirk participated in the 60 Minutes interview as part of the business activities of PETA, including for the purpose of promoting the purposes of the PETA Australian Wool Campaign. That constituted conduct by Newkirk in Australia. During the course of the 60 Minutes interview, Newkirk made the following statements in relation to the PETA Australian Wool Campaign and her knowledge, approval and involvement in every aspect of that campaign:
There's no budging them unless they feel the pressure. You know bleeding hearts don't affect them. Bleating lambs don't affect them, but contracting wallets will affect them.
…
Their fate is in their hands. They can decide today. They can decide in three months. They can decide next year or they can decide in four years. But we'll have an impact. It's up to them how much impact, how long this war goes on.
…
We're very close to bringing at least two more [companies who use Australian wool] on board as we have with Abercrombie and Fitch.
…
We say we'd like to present you with the facts. And if they ignore us, we write again and say we urge you to consider what's happening here. And if they continue and continue to ignore us, then we have more people write to them and sometimes a celebrity will call them. And then we tell them, if you are going to ignore this, we have the right to be outside your stores. And then usually, they come along.
33. In addition, during the course of the interview, Newkirk made representations to the effect of those which were then appearing on the PETA websites, namely the Mulesing Cruelty Representation and the Viable Alternatives Representation, publicised the fact that retailers had responded to threats of campaigning against them, and conveyed to other retailers generally the means which would be employed to force them to stop selling Australian wool garments. In so conducting herself, Newkirk was participating in the PETA Australian Wool Campaign as part of the business activities of PETA and reinforcing the representations which were being made at that time on PETA websites and in protests against retailers around the world.'
12 Ms Newkirk contends that the making of the representations in question does not have a trading or commercial character, as the representations are statements made to the public at large relating to the treatment of animals which are in the nature of a comment on social or ethical issues. The applicants' response is that PETA's business activities include participation in media interviews, such as the 60 Minutes program, as a means of promoting campaigns being conducted by PETA, and as a means of financing such campaigns by attracting donations, and by promoting the sale of wool substitute products by PETA and vendors whom it sponsors.
13 In Plimer v Roberts (1997) 80 FCR 303 at 323 Lindgren J, as a member of the Full Court, noted that the expression 'in trade or commerce' had proved difficult, but that in Concrete Constructions (NSW) Pty Ltd v Nelson (1990) 169 CLR 594 ('Concrete Constructions') the High Court favoured a narrow construction of that section namely: 'in (as part of) a particular trading or commercial dealing, transaction or activity'. A wider interpretation which would include 'the myriad of activities which are not, of their nature, of a trading or commercial character but which are undertaken in the course of, or as incidental to, the carrying on of an overall trading or commercial business' (Concrete Constructions at 602-603) was rejected.
14 In Fasold v Roberts (1997) 70 FCR 489 at first instance Sackville J enunciated (at 531) a number of propositions extracted from the cases decided up to that point which shed light on the test formulated by the High Court in Concrete Constructions. Those propositions are:
(i) A person undertaking public presentations, such as exhibiting films or publishing advertisements, engages in conduct in trade or commerce if the presentations are designed to advance or protect the commercial interests of the exhibitor or the publisher, or of trading entities represented by the exhibitor or publisher: Glorie; Tobacco Institute v AFCO.
(ii) Altruistic motives will not necessarily prevent the public presentation being in trade or commerce, depending on the other circumstances of the case: Glorie.
(iii) A person may make public statements designed to influence trading patterns, yet not make those statements in trade or commerce. Even statements designed to persuade people to buy a particular commodity, if made by a Government representative, are not necessarily made in trade or commerce: Kerin.
(iv) Public statements by a person not engaged in trade or commerce himself or herself, may be made in trade or commerce if designed to encourage others to invest, or continue investments, in a particular trading corporation: Meadow Gem.'
Proposition (i) is substantially built upon the decision of Morling J in Glorie v WA Chip & Pulp Co Pty Ltd (1981) 55 FLR 310 ('Glorie'). In Robin Pty Ltd v Canberra International Airport Pty Ltd (1999) 179 ALR 449 Gyles J thought that the better view is that Glorie is not consistent with Concrete Constructions, a view shared by Finn J in Village Building Co Ltd v Canberra International Airport Pty Ltd (No 2) (2004) 208 ALR 98.
15 The decision of Finn J referred to above was the subject of an appeal: Village Building Co Ltd v Canberra International Airport Pty Ltd (2004) 210 ALR 114 (French, Sackville and Conti JJ). In that case the Full Court pointed out that Concrete Constructions decides that representations must be made in the course of a trading or commercial relationship or of activities that bear a trading or commercial character before they can be found to have been made 'in' trade or commerce. Their Honours said (at [52]):
'It is plainly essential to maintaining the operations of a construction company that a foreman give instructions to a worker to carry out building activities. But, as Concrete Constructions decides, the fact that the foreman's instructions are in the interests of a corporation, or even essential to its operations, does not necessarily mean that the transaction or dealing is in trade or commerce. The conduct must have occurred in the course of a trading or commercial relationship or otherwise to bear a trading or commercial character.'
16 It appears from [53] of their Honours' decision that the position may have been otherwise if the representations in question could be described as promotional activities designed to persuade consumers to use the services offered at Canberra Airport. However, their Honours said (at [55]):
'Conduct by a corporation which does not otherwise bear a trading or commercial character is not brought within s 52 simply because it may be thought in some way to benefit the corporation's business or because it can be labelled as "promotional".'
And at [59]:
'The fact that conduct has the purpose or effect (or both) of maintaining or protecting a business is not, of itself, enough to ensure that the conduct is in trade or commerce.'
17 Orion Pet Products Pty Ltd v Royal Society for the Prevention of Cruelty to Animals (Vic) Inc (2002) 120 FCR 191 ('Orion Pet Products') is a decision of Weinberg J which illustrates the difficulties with which the present applicants may be confronted. The applicants in that case were manufacturers of electronic dog collars designed to train dogs not to bark. Adverse comments about the dog collars had been made by officers of the first respondent ('the RSPCA') both orally on radio, on the RSPCA website and to a journalist who published them in a newspaper. One way in which the TPA case was put was that an effect of disparaging electronic dog collars was to promote the sale of alternative collars marketed by the RSPCA.
18 Although some of the statements in question were found to be misleading and deceptive and even though the RSPCA was found to be a trading corporation, the TPA claims failed as the statements were not made 'in trade or commerce'. Weinberg J found that although the RSPCA was a trading corporation, many of its functions have a non-trading or commercial character. The statements made by the RSPCA officers were part of an educational and political agenda which were only tenuously connected, if at all, with the RSPCA's trading activities.
19 The applicant failed in the RSPCA case because Weinberg J held, after a consideration of all of the evidence, that there was, at most, a tenuous connection between the conduct complained of and the RSPCA's trading activities. The case was decided on its own facts. I am not able to assess, at this stage of the proceedings, whether the distinction which his Honour drew between the RSPCA's trading activities, on the one hand, and its educational or political activities on the other, has any parallel in relation to PETA.
20 Even if it be assumed (as it must for the purposes of the present application) that PETA's business included the conduct of the Australian Wool Campaign and the raising of monies to fund that campaign, it does not necessarily follow that the making of the relevant representations was conduct in trade or commerce. The representations were not made in the course of a trading or commercial relationship. The applicants' case, however, is that the representations in question were designed to induce consumers not to buy goods made of Australian Wool, to support the activities of PETA by donations, and to acquire non-wool products manufactured by or under the auspices of PETA. Concrete Constructions recognises that promotional activities in relation to the possible supply of goods or services to consumers can be in trade or commerce. Activities may be of that character even if they do not specifically refer to the goods or services in question. For example, promotion of BHP as 'the big Australian' might be conduct engaged in trade or commerce.
21 The applicants' submissions recognised that there is at least a substantial question as to whether the representations in question were made in trade or commerce. The existence of a substantial question provides a reason for a trial, rather than for summary dismissal of the claim. The decision in Orion Pet Products provides foundation for a speculation that the applicants' claim may ultimately fail, but having regard to the way in which the applicants put their case, I do not think that it can be said that the proposition that the representations were made in trade or commerce is so hopeless that it should be struck out without embarking upon the factual enquiry.