ACCC case against Magnamail dismissed by Federal Court

Harry Booth

28th Jul 2026

Australia’s consumer watchdog has had its case against mail order business Magnamail thrown out by the Federal Court after bringing forward allegations of false and misleading promotional material.

The ACCC claimed that Magnamail sent promotional material on letters, envelopes, catalogues, and scratch cards to “hundreds of thousands” of consumers between May 2022 and July 2023. This material, the commission alleged, misrepresented the consumers’ ability to win major prizes.

“When the draws for those prizes had occurred before consumers received the promotional materials such that only a small number of pre-drawn consumers could claim a major prize,” the ACCC said.

The Federal Court, however, found that the promotional material did not make false and misleading representations. The case against Magnamail’s parent company, Direct Group Pty Ltd, was dismissed. 

This marks a significant turn in proceedings that were first initiated in November 2024; the ACCC also argued that Direct Group was knowingly involved in the conduct.

The ACCC said it is “carefully considering” the court’s judgment.