The Australian Competition and Consumer Commission has obtained court enforceable undertakings, which includes payment, from seven former directors of Mercy Ministries Incorporated and/or Mercy Ministries Limited in relation to misrepresentations by those entities.
The undertakings include an apology and a voluntary payment of $1050 to those people affected by the conduct. These are made by former directors Mark Zschech, Peter Irvine, Mark Caldwell, Stephen Crouch, Young Pil (Phil) Sohn, Darlene Zschech and Clark Pearson.
Mercy Ministries is a not-for-profit Christian based charitable organisation which offered a residential counselling program to young women affected by issues such as eating disorders, depression, self harm, unplanned pregnancy, drug and alcohol abuse and the effects of sexual or physical abuse. The program was offered whilst the young women resided in a Mercy Ministries home.
The ACCC was concerned that in a period between January 2005 and June 2008, Mercy Ministries misrepresented in brochures and on its website that its services were provided for free, when the majority of residents were required to assign their Centrelink payments to Mercy Ministries for the duration of their stay.
The ACCC was also concerned that during this period, Mercy Ministries misrepresented that it offered professional support from psychologists, dieticians, general practitioners, social workers and counsellors, when the level of professional support was not available as represented. Mercy Ministries did not employ this range of professionals. It did facilitate access to external professionals upon request from residents.
To address these concerns, as part of the undertaking, the former directors:
* acknowledge that they were persons ultimately responsible for the conduct of Mercy Ministries, and admit its conduct was false, misleading and deceptive, and likely to contravene sections 52, 53(aa) and 53(e) of the Trade Practices Act 1974
* signed a joint letter of apology to past residents in the relevant period
Full news release: Undertakings remedy Mercy Ministries misleading conduct | ACCC
Mark Zschech is the husband of Hillsong worship leader Darlene Zschech, Stephen Crouch is the husband of Hillsong CityCare pastor Donna Crouch, and Peter Irvine jointly owns the Gloria Jean’s cafe chain with Hillsong board member Nabi Saleh.
December 17th, 2009 2:42 pm
Joel, it’s probably worth noting this statement
December 17th, 2009 3:03 pm
Thanks, Doug. I note that Hillsong has had trouble before in various areas. I hope that Brian can do more to clean up the act of those who he promotes.