Issue Date: - Friday, 16 February 2007

Perth company fined for Door-to-Door Trading - Ferntree Finance Pty Ltd

Ferntree Finance Pty Ltd of Nedlands has been found guilty in the Perth Magistrates Court for 11 breaches of the Door-to-Door Trading Act 1987. Ferntree Finance was fined a total of $4,400 and ordered to pay costs of $2,373.

Ferntree made unsolicited visits to consumer s homes and offered to have a sales consultant visit their home to discuss entering into an Education Program which would assist with making financial and investment decisions. The cost of the Education Program was $49.

Following the sales consultants visit, consumers attended the office of Ferntree Finance and ended up also entering into a related Retainer Agreement at the cost of $3,990. Both contracts included the provision of advice to the consumers regarding future investment in real estate. The company
s actions were found to be a deliberate attempt to circumvent the protection offered to consumers by the Act.

Generally, a contract must exceed $50 to be considered a prescribed contract regulated under section 7 of the Act. Consumer Protection alleged that as the Education Program and Retainer Agreement related to substantially the same transaction, each was a prescribed contact regulated under the Act.

The Act also requires traders to provide certain information at the time a contract is entered into, including advising that a 10 day 'cooling off' period applies to the contract, advising that no money is payable for the contract until the expiration of the cooling off period and providing information on how to cancel the contract in a prescribed form.

The Magistrate in handing down the penalty noted that consumers are particularly vulnerable to unsolicited telephone calls and visits.

!Our consumer protection laws exist to protect the community from high pressure sales tactics and unscrupulous traders. This includes cooling off periods and the right to rescind contracts, mandatory documentation outlining the consumer s rights, and the provision of contracts so consumers can make informed decisions," Consumer Protection Commissioner Patrick Walker said.

!The fines handed down by the court indicate that it took a dim view of the activities of this trader," Mr Walker said.

Complaints regarding door to door trading activities should be emailed to consumer@docep.wa.gov.au or telephone 1300 30 40 54.