A company that provides travel advice to the global entertainment industry has been banned from doing business in Australia because it provides “no reasonable prospect of success”.
The ban is the latest setback for the company, which has been forced to suspend operations in Europe and the US in recent months after it was accused of misleading customers.
The company, MLM Travel, said it had been contacted by the Federal Court over a legal challenge that it was unlawfully importing a drug from China.
The ban came after a tribunal ruled in October that the company was breaching the Trade Practices Act, which allows the government to impose penalties on those who provide advice or services to businesses that provide products or services that are harmful or detrimental to the public interest.
The Federal Court ruled that MLMTravel had not breached the Act because it did not “make a reasonable prospect that it will result in the improvement of the consumer’s life”.
The company had argued that its product, MLP, was the best-selling travel product on the market and that it would benefit consumers by helping them to find and book accommodation, hotels and other accommodation.
It said the drug was a form of medical therapy for people suffering from a range of conditions including chronic pain, rheumatoid arthritis, anxiety and depression.
The court also said that MLP was not a medicine and was not prescribed by a doctor.
The government said it was “deeply disappointed” by the ruling and that the Government was working with MLM to determine what actions would be taken.
“The court made it clear that there are very real concerns about the impact that MLPs’ actions have on people’s health and wellbeing,” a spokesman said.
“As a result, we will be considering a range if the court’s decision is upheld.”