Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Chrisco fined $200,000 for violating Australian Consumer Law, (Mar 3, 2016)
Organizations Mentioned:Chrisco Hampers Australia Ltd.
By Michael Menzhuber, J.D., LL.M.
In a proceeding brought by the Australian Competition and Consumer Commission (ACCC), the Federal Court ordered Chrisco Hampers Australia Ltd. to pay a $200,000 penalty for violating the Australian Consumer Law (ACL). Chrisco is a supplier of goods to consumers in most areas of Australia, the ACCC announced today.
The Court determined that, between January 2011 and December 2013, Chrisco made a false or misleading representation to consumers that they could not cancel a lay-by agreement after making their final payment. The ACL provides that consumers have a right to cancel a lay-by agreement any time prior to delivery of the goods, including after paying their final lay-by installment.
The Court also found that Chrisco’s 2014 lay-by agreement contained an unfair contract term. The term, which related to Chrisco’s “HeadStart Plan,” allowed Chrisco to continue to take direct debit payments from a consumer after the lay-by order had been fully paid. Consumers could only avoid these direct debit payments by affirmatively “opting out” of them.
The ACCC became aware of concerns regarding Chrisco’s lay-by agreements during a meeting with the Indigenous Consumer Assistance Network (ICAN), as part of the ACCC’s Indigenous consumer protection and outreach work.
According to ACCC chairman Rod Sims, “The importance of the penalty imposed by the Court against Chrisco is that it sends a strong message to businesses using lay-by as a method of sale that they must meet all of their ACL obligations, and do not mislead consumers about their rights.”
Companies: Chrisco Hampers Australia Ltd.
News: ConsumerProtection