The Australian Competition and Consumer Commission (ACCC) has appealed a Federal Court decision dismissing its case against mail-order catalogue business Magnamail.

The regulator had alleged Magnamail made false or misleading representations to consumers through promotional materials linked to 12 “pre-draw” prize competitions.

Between May 2022 and July 2023, the company sent letters, catalogues, envelopes and scratch cards to hundreds of thousands of consumers. The promotions generally allowed customers to enter a prize draw when purchasing products from a Magnamail catalogue.

But the Federal Court dismissed the ACCC’s allegations in July, along with its case against Magnamail’s parent company, Direct Group.

The ACCC is appealing the decision concerning Magnamail but will not challenge the dismissal of its case against Direct Group. A hearing date has yet to be set.

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The regulator launched Federal Court proceedings in November 2024, alleging Magnamail’s promotional materials contained misleading statements about consumers’ prospects of winning prizes.

It also claimed Direct Group was knowingly involved in the alleged conduct.

Magnamail operated as a direct mail-order catalogue business across Australia and New Zealand, selling a range of products through catalogues distributed to consumers.

The company stopped running pre-draw promotions in 2023 while the ACCC’s investigation was underway.

Direct Group operates several direct-to-consumer retail brands and publications, including Reader’s Digest, Over Sixty, Infashion, House of Pets and television shopping network TVSN.

The appeal will be heard by the Federal Court on a date to be determined.