Issue Date:  -  Friday, 29 December 2000

Enforceable Undertaking Extended Against Computer Retailer

An enforceable undertaking has been extended today by the Supreme Court, against a Perth-based computer retailer, Info4pc.com Pty Ltd.

The Ministry of Fair Trading launched an investigation into the company after computer packages were offered for $299, but were found to cost the company $1250 to purchase.

The Commissioner for Fair Trading, Patrick Walker said today’s outcome is a good one in terms of consumer protection.

“We fear they may be breaching Section 19 of the Consumer Affairs Act by using bait advertising. When the matter comes back before the Supreme Court Info4PC.com will need to show that they have the finance to meet consumer orders, before they take part in any further trading in WA.”

Info4PC has given the enforceable undertaking to the Supreme Court, in the following terms for WA consumers:

The company must not advertise or accept orders for computers or upgrades;
 
 - Info4pc.com must provide supporting evidence to the Court by the 5 January that they can meet orders taken from consumers for computers and/or upgrades prior to the 19 December;
 - A notice must be posted on the company website stating that no other applications can be accepted from Western Australians;
 - All monies received by consumers on or after 19 December must be placed into their solicitor’s trust account or returned to consumers if requested;
 - Consumers who ordered computers on or after 19 December must be informed that their order cannot be fulfilled and that they are able to have their money refunded;
 - The company will not make any withdrawals from its bank account other than those in the ordinary course of business. They are unable to make cash withdrawals or cheques payable to cash or any payments to directors or associated entities.

Ministry investigations have determined that the company’s bank balance at 1 December contained less than half the amount needed to meet obligations to Western Australian Consumers.

“Consumers who placed orders on or after 19 December are encouraged to approach the company for a refund. Consumers who ordered computers before 19 December, will need to wait until the Court decides if the company can meet its obligations, before they can take action,” Mr Walker said.

**Update**

For more recent information check out the February issue of FairBytes and the Australian Competition and Consumer Commission (under media releases 29 January 2001)