A health and well-being company that markets programs to Australians with chronic conditions is facing Federal Court action after the consumer watchdog raised concerns about how it signed up customers and handled requests to exit contracts.
The Australian Competition and Consumer Commission (ACCC) has filed proceedings against Miyagi Pty Ltd and its founder, Shane Da Costa, alleging that the business misled consumers about their rights and locked them into agreements using terms that were later found to be unfair under Australian law.
Da Costa, who held the roles of chief executive, Head of Sales, and Head of Marketing simultaneously, is alleged to have personally approved both the contracts in question and the scripts used by sales staff.
Scripts written to imply medical expertise
Miyagi attracted customers through social media advertising, inviting people to book an obligation-free call. What followed, the ACCC alleges, was a structured sales process designed to create the impression that representatives had professional health credentials.
Staff were directed to open conversations using language that referenced specific diseases, personal risk factors, and life expectancy in clinical terms – despite holding no formal medical or health qualifications.
The regulator contends this led consumers to believe they were receiving guidance from qualified practitioners.
Contracts were then sent by text or email, and consumers were asked to review and sign them while the sales representative remained on the line, a practice the ACCC says restricted the time available to read and consider the terms.
Thousands affected, costs up to $7,500
Miyagi’s programs targeted Australians managing conditions including type 2 diabetes, heart disease, sleep apnoea, and menopause.
Program lengths ranged from six to 18 months, with fees between $1,800 and $7,500 payable in full – either upfront or through a structured payment plan.
When consumers sought to cancel, many were refused.
The ACCC alleges this occurred even when the request was made within days of signing and before the customer had used any part of the service.
One consumer reported believing the person on the initial sales call was a health professional, given the specificity of the health risks discussed.
They also understood the program would include one-on-one dietitian support. After roughly two months without receiving it, they tried to cancel.
Miyagi declined, citing its terms and conditions. That consumer paid the full $4,930 cost of the program.
ACCC flags wider competitive harm
ACCC Commissioner Luke Woodward said the case raised concerns beyond individual consumer harm.
“We are taking this action because we are extremely concerned that consumers, including many with complex health conditions, signed up to Miyagi’s program on a false premise, under unfair contract terms and after having been given incorrect information about their consumer rights,” Woodward said.
“By providing consumers with information that we say was inaccurate and misleading, Miyagi diminished people’s ability to both make informed decisions and exercise their consumer law rights.”
Woodward also pointed to the competitive implications of the alleged conduct.
“Many consumers were left significantly out of pocket as a result of Miyagi’s alleged misrepresentations and reliance on unfair contract terms. As well as the human impact, we are concerned that a business which misleads consumers and uses unfair contract terms has an unfair advantage over its law-abiding competitors.”
Luke Woodward
CEO faces disqualification order
The ACCC is seeking financial penalties, consumer redress orders, and declarations against both Miyagi and Da Costa. It has also applied for an order barring Da Costa from managing a corporation.
Woodward said pursuing executives directly was a deliberate aspect of the action.
“We are also taking action against Miyagi’s CEO, Mr Da Costa, who we say was involved in the alleged breaches of the Australian Consumer Law,” he said.
Da Costa’s public profile: politics, remote sales, and bold claims
Away from the health programs business, Da Costa maintains an active and outspoken presence on social media. His public posts range across politics and business, with one video captioned: “Australia is run by left lunatics with a woke agenda.”
On LinkedIn, Da Costa describes himself in expansive terms: “I’m The Proud Founder & CEO of Heart Smart, One Of The Worlds Leading Online TeleHealth Companies Helping 1000’s Of People Globally With Diabetes & Heart Disease And Am Now Also Building The Freedom Academy To Help People Earn 10-30k Per Month Whilst Working From Anywhere In Remote Sales Roles.”
The Freedom Academy – a separate venture Da Costa appears to be building alongside Miyagi – positions itself as a pathway to high-income remote sales work.
His LinkedIn profile makes no reference to the Federal Court proceedings.
The combination of a contested health business, a new sales training venture, and a vocal public persona is likely to attract further scrutiny as the ACCC case proceeds.
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Background
Miyagi has operated under several brand names, including Diabetes Wellness Australia, Heart Smart Australia, Healthy Gut Australia, Master Menopause Australia, and Defeat Sleep Apnoea.
The case sits within three of the ACCC’s 2026–27 enforcement priorities: consumer guarantee compliance, unfair contract terms, and manipulative practices in digital markets.
It also reflects the regulator’s stated focus on executive accountability and on protecting consumers who are vulnerable.
Main image: Shane De Costa