Issue Date:  -  Wednesday, 4 October 2000

Computer buyers warned about contracts

The Ministry of Fair Trading today urged people thinking about buying a personal computer to take stock before committing themselves to a deal.

Commissioner for Fair Trading Patrick Walker said that in particular, he did not recommend consumers pay large deposits or the full price up-front. "It’s sensible to offer a deposit of around 10% on any significant purchase, especially when dealing with a firm for the first time," Mr Walker said.

Recent advertising by computer retailers had spurred the Ministry to remind the public.

"Only a gullible or foolish person would enter into a contract (eg: agree to purchase a computer) without finding out and understanding all the terms and conditions of that contract."

"My advice is: don’t sign until you know what you’re getting for your money and understand what other commitments are attached to the purchase," Mr Walker said.

"When businesses are coy about supplying you with a copy of the contract, including terms and conditions, the Ministry’s experience is that there are likely to be on-going costs or risks."

Mr Walker said the Ministry had received more than 50 calls this week from consumers concerned about computer deals on offer, which were now being examined. "If there is any clear evidence that consumers are at risk, further action will be taken," Mr Walker said.