Issue Date:  -  Monday, 3 April 2000

Food scheme 'sham'

On Friday 31 March 2000, Kimberley Wright, a sales representative for a restaurant discount scheme, was fined $2500 for breaches of the Door to Door Trading Act.

Kimberley Wright is a director of Austar Enterprises Pty Ltd, a marketing company that sells memberships for the Connoisseur Card scheme, also known as Pacific Good Food and Accommodation Guide.

Ms Wright was charged with eight counts of failing to provide information and forms under the Door to Door Trading Act.

The Door to Door Trading Act gives consumers the right to cancel a contract up to 10 days after they sign. The Act does not apply to purchases made in course of a business conducted by a consumer.

In this case, consumers found that papers they had signed implied that the ‘Connoisseur Card’ was being purchased for "their" business. In fact the consumers were simply employees. "In one case it was implied

that the consumer owned a string of hotels" Fair Trading Commissioner Patrick Walker said.

Referring to one set of charges, Magistrate Jackie Musk said "It is a sham to suggest this was a commercial transaction, not a personal one, to take it out of the protection of this consumer protection legislation."

The Magistrate described Ms Wright as dishonest and the contracts as "contrived".

"In October 1998, Austar Enterprises Pty Ltd was fined a total of $2350 after pleading guilty to four charges under the Fair Trading Act for misleading customers about their right to a cooling off period, and three other charges under the Door to Door Trading Act.

"Three of the charges against Ms Wright related to a contract written up by her just three weeks after Austar was convicted for similar conduct in 1998."

Mr Walker said that the purpose of the Door to Door Trading Act is to protect unwary consumers from "on the spot" purchasing decisions they might later regret.

"If the Act is followed it ensures that consumers are informed of their rights and gives them a way out of contracts that they might have been talked into in a pressure situation" Mr Walker said.

If a seller fails to provide information required under the Act, the cooling off period is extended from 10 days to six months. Consumers who are unsure about their rights under the Door to Door Trading Act should contact the Fair Trading Call Centre on 1300 30 40 54.

Media Contact:
Mike Winchester
Tel (08) 9282 0961