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13 February 2025

Belle Gibson's Legal Struggles Continue After Fraud Claims

Consumer Affairs Victoria relentlessly seeks to recover outstanding debts amounting to over $500,000 from the disgraced wellness influencer.

Belle Gibson, the disgraced wellness influencer known for her fraudulent claims to have cured terminal brain cancer through diet and natural therapies, remains embroiled in legal and financial troubles years after being exposed. Recently, with renewed interest following the debut of the Netflix series Apple Cider Vinegar, the narrative of her deception continues to garner public attention and condemnation.

Initially gaining fame by promoting her wellness app, The Whole Pantry, Gibson claimed to have made substantial charitable donations, raising thousands purportedly from her wellness products. When the truth came to light, it was revealed she had only donated a fraction of the claimed amounts, amounting to less than $10,000 compared to the $420,000 she claimed to have earned. A major investigation revealed she had fabricated both her cancer diagnosis and her charity work.

Gibson faced civil legal actions rather than criminal charges, with Consumer Affairs Victoria (CAV) pursuing her for breaching consumer law. The Federal Court ruled against her, and in 2017, she was fined $410,000 plus additional legal costs of $30,000 for her misleading and deceptive conduct. Federal Court Justice Debra Mortimer highlighted how Gibson made claims without reasonable basis, branding her behavior as unconscionable, particularly her false assertions about her health and the supposed donations intended for vulnerable families.

The significant fine consisted of various penalties: $150,000 for failing to support Joshua Schwarz's family, who suffered from an inoperable brain tumor; $90,000 for unfulfilled donation promises from her health app; and $50,000 from Mother's Day event proceeds. Despite these substantial penalties levied almost eight years ago, reports confirm she has not yet settled her debts.

Victorian Premier Jacinta Allan expressed disappointment over the prolonged unresolved status of the case, stating, "Behind the TV stories, behind the dramatisation are real people who have had their lives devastated by the actions of this individual." She affirmed the commitment of CAV to continue pursuing Gibson for the outstanding amount, emphasizing the serious consequences of her actions.

Despite being officially required to pay her fines within two weeks of the court ruling, Gibson failed to do so and was later summoned back to court to explain her financial situation. During this appearance, she claimed to owe $90,000 to her associate Clive Rothwell, who apparently supported her financially. Allegations surfaced indicating she owed other creditors approximately $170,000 by 2020, including hefty sums to finance companies.

Gibson’s financial struggles seem to have led to drastic measures, including two raids of her home by the Victorian Sheriff’s Office, aimed at recovering her debts through asset seizure. The first raid occurred in January 2020, followed by another in May 2021, yet specific results of these actions have not been disclosed, and it remains uncertain how much of her debt has been recovered.

Consumer Affairs Victoria proactively continues to chase Gibson for her dues. Their spokesperson confirmed to Melbourne’s The Age they are exhausting efforts to recoup the unpaid fines. Importantly, these fines do not lapse and can accumulate interest, prolonging Gibson's financial obligations.

Legal experts have noted the complexity surrounding the enforcement of such judgments, especially since the court's file relating to Gibson has been closed. Nonetheless, there are legal mechanisms available if enforcement actions are required again, including contempt of court proceedings.

Commentators have drawn connections between Gibson's fraudulent claims and the broader issue of misinformation propagated by wellness influencers. Dr. Natalie Cujes of UNSW Canberra pointed out the real harm such inaccurate claims can cause, urging vigilance against false promises surrounding health. Legal reforms were initiated after Gibson's case, empowering authorities to act against individuals exploiting health-related misinformation.

Sterner measures aimed at social media influencers were also established. Changes to the Therapeutic Goods Advertising Code now restrict influencers from promoting therapeutic goods if they have received compensation without substantiated evidence—essentially targeting cases like Gibson's. Industry expert Suzy Madar emphasized the necessity of these regulatory changes to safeguard public health from misleading claims.

Gibson’s saga serves as both cautionary tale and stark reminder of how misinformation can wreak havoc on individual lives and the health care system. Despite being out of public view, the ramifications of her actions ripple through the lives of those she misled and the system meant to protect vulnerable individuals.

With the ghosts of her deceptive wellness empire still haunting the industry, the unwavering efforts of CAV signal they won’t relent until Gibson fulfills her financial obligations. Will the authorities succeed where others have failed? Only time will tell as the pursuit continues for accountability and justice.