Shaun Temby
Shaun has over two decades of expertise in commercial disputes, competition, and consumer law and provides strategic legal solutions to franchising and consumer markets clients.
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Brands are among a company’s most valuable assets – they embody reputation and consumer trust. Two recent Australian court decisions underscore how closely courts guard against brand confusion, even when businesses operate online or use seemingly different names. These cases remind retailers (whether online or brick-and-mortar) that misleading consumers or infringing on a competitor’s brand can lead to serious legal trouble.
Below, we provide a concise analysis of each case – Jackson's Drawing Supplies v Jackson’s Art Supplies and Bed Bath ‘N’ Table v Global Retail Brands Australia – focusing on the conduct deemed misleading or infringing, the key factors considered by the courts, and practical lessons to retailers avoid similar traps.
This case involved two art supply retailers using the name “Jackson’s.” The Australian company, Jacksons Drawing Supplies (JDS) claimed that the UK-based Jackson’s Art Supplies (JAS) misled consumers and infringed on its goodwill by operating under a confusingly similar name in Australia. JAS was a UK-based company with no physical stores in Australia, but launched an Australia-focused online store – complete with an Australian phone number and a local warehouse that ships goods to Australian customers. The Federal Court ultimately found that JAS’s operation of its Australian-facing website:
In short, even without a physical shopfront in Australia, JAS’s online activities in Australia created a misleading impression that it was associated with JDS or was an Australian business, thereby “blurring the lines” for consumers.
In reaching this decision, the Court looked at several critical factors to determine why JAS’s conduct was misleading:
Together, these factors caused the Court to form the view that JAS’s online presence in Australia would likely mislead consumers into thinking its business was associated with JDS, breaching the ACL. Notably, the Court stressed that a foreign company can breach Australian consumer and trade mark laws purely through online commerce targeting Australia – a physical local store or presence is not required to be liable for misleading or deceptive conduct.
This High Court case, dubbed by some commentators as a true “battle of the brands”, involved Bed Bath ‘N’ Table (BBNT), a well-known Australian retail chain in “soft homewares” (bedding, bath linens, home decor), and a rival chain, Global Retail Brands Australia (GRBA). In 2021, GRBA launched new stores under the name “House Bed & Bath”, using that phrase on store signage, websites, social media, till receipts, advertisements, and even staff name badges. BBNT commenced proceedings, claiming this conduct infringed its registered “Bed Bath ’N’ Table” trade mark and misled consumers in breach of ACL s18.
In the initial trial, Justice Rofé found that “House Bed & Bath” did not infringe BBNT’s trade mark – as the two marks weren’t deemed “substantially identical or deceptively similar” under trade mark law. Notably, the word “HOUSE” at the start of GRBA’s name gave House Bed & Bath a distinct overall impression, and the Court found consumers were unlikely to confuse it with the full Bed Bath ’N’ Table mark. However, the Judge found the same conduct to be misleading or deceptive under the ACL, as the way that GRBA presented “House Bed & Bath” in the marketplace was likely to mislead consumers into thinking the two businesses were associated, especially given the two stores traded in the same goods. In late 2025, the High Court agreed with this decision, upholding the trial judge’s finding of misleading conduct even though the trade mark infringement claim failed. This outcome confirms that even if a new brand doesn’t technically infringe a trade mark, it can still violate consumer law by creating a misleading or deceptive impression in the market.
In finding the conduct misleading and deceptive, the Court highlighted several factors:
Given all these factors, the High Court held that GRBA’s use of “House Bed & Bath” was likely to mislead or deceive consumers into believing there was an affiliation with BBNT, breaching s18 of the ACL. This case provides an important reminder for businesses and illustrates that Australian courts will carefully scrutinise not just names, but the overall context of marketing and branding when assessing misleading conduct.
Given all these factors, the High Court held that GRBA’s use of “House Bed & Bath” was likely to mislead or deceive consumers into believing there was an affiliation with BBNT, breaching s18 of the ACL. This case provides an important reminder for businesses and illustrates that Australian courts will carefully scrutinise not just names, but the overall context of marketing and branding when assessing misleading conduct.
Before launching in a new market, especially online, research existing businesses with similar names. Avoid choosing a brand name or website domain that is likely to be confused with an established local competitor. Even unregistered business names and unregistered trade marks can be protected under Australian law (through consumer law and passing off) if they have an established reputation.
Passing a simple trade mark register search or even avoiding direct trade mark infringement doesn’t grant a free pass to use a similar name. It is important to conduct comprehensive clearance searches which consider whether a proposed trade mark or brand is available for both use and registration before launch. As in held in the Bed Bath n Table case, you must also consider consumer law – if your branding (name, logo, or store design) is too close to a competitor’s, it can still be illegal due to misleading conduct. Always evaluate your brand’s overall impression on consumers, not just side-by-side logo differences.
Pay attention to where and how you roll out a new brand. Opening stores next to a similarly named competitor, or mimicking their marketing style, heightens the risk of confusion. To avoid the risk of litigation, always differentiate your store’s look, feel, and placement to clearly signal to consumers that you are a separate business.
Don’t assume you can safely use parts of a famous competitor’s name or trade dress. If a rival has a unique, well-known and well established marketing element (like “Bed & Bath” on signage, or a distinctive store style), copying it – even partially – may be seen as an attempt to trade off their reputation. This can trigger competitor’s to commence legal action under the ACL even if trade mark law isn’t breached.
If you share a brand name or similar trade name with another business, differentiate your branding clearly. In practice, this might include using distinct logos, taglines, or even prominent disclaimers to clarify that your business is independent and not related to similarly named competitors.
Merely operating via a website does not shield a company from Australian laws. If your online store targets Australian consumers – for example, by using “.com.au” domains or showing local contact details, currencies, or shipping to Australian customers – you must ensure you’re not misrepresenting an association with any local business.
If you discover a competitor using a name or marketing that could confuse your customers, do not delay in taking action. Courts may deny certain remedies if you wait too long to enforce your rights. Acting promptly can prevent further consumer confusion and preserve the full range of available legal remedies.
Treat competitor research and branding decisions with caution – any emails or plans showing you knew of a competitor’s brand and pushed ahead could later be used as evidence of intentional or reckless conduct. Encourage a culture of proactive brand originality rather than “borrowing” ideas, and document good-faith efforts to avoid confusion.
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Shaun has over two decades of expertise in commercial disputes, competition, and consumer law and provides strategic legal solutions to franchising and consumer markets clients.
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