Telemarketers strike again

It seems that doorknockers and telemarketers just can't stay out of trouble. In the firing line this time is Red Energy, an energy retailer whose telemarketers made unsolicited calls to consumers to get them to switch to Red Energy.

The sales pitch included telling consumers that Red Energy was affiliated with their energy supplier and that the call wasn't a sales call. They also said that energy providers in NSW had to charge the same price and that the prices were regulated by the government, both of which are untrue.

Unfortunately, some people fell for the act. However, the ACCC did not.

And the penalty? Four infringement notices adding up to $26,400.

More misleading claims from Coles

Unsurprisingly, consumer laws say that if you are going to tell people where your goods are from, then you need to be accurate. Following recent trouble for its misleading bakery claims, supermarket giant Coles was in hot water again, this time for placing signs over oranges, kiwis, asparagus and almonds which read "Helping Australia Grow" along with an "Australian Grown" symbol.

The logical conclusion was that the produce had been grown in Australia, right?

Alas, no. Turns out the produce was grown overseas and imported into Australia. Even though the real country of origin was displayed either on the produce itself, its packaging or the display bin, the ACCC considered that those identifiers weren't sufficient to dispel the impression that the produce was grown in Australia.

As a result, Coles coughed up $61,200 for the six infringement notices.

How to add insult to injury

As if car repairs weren't already expensive enough, a former Europcar franchisee, BAJV Pty Ltd (BAJV), was deliberately overcharging customers for the cost of hire car repairs. They'd either inflate the cost estimate, or get two quotes, charge for the higher one and pocket the difference. Genius.

The Federal Court was unimpressed with BAJV's conduct, labelling it unconscionable and misleading, and handed out penalties of $200,000 to BAJV and $40,000 to BAJV's director.

HP pays massive penalties for misrepresentations about consumer guarantees

Hewlett Packard (HP) recently consented to a massive $3 million in penalties for making misleading representations about consumer guarantees.

HP was in trouble for telling consumers that:

  • remedies for faulty goods were at HP's discretion;
  • products purchased online could only be returned at HP's sole discretion; and
  • the warranty period was limited to the express warranty period and customers would need to pay for remedies outside that period.

The rules are clear about consumer guarantees under the legislation: you can't opt out and you can't be shady about consumers' rights. Make sure your policies are up to scratch.

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