Issue Date:  -  Thursday, 12 October 2000

Computer buyers warned about firm

The Ministry of Fair Trading has warned consumers of the risks associated with dealing with a Perth computer retailing firm, Info4pc.com Pty Ltd.

The firm, which trades from the QV1 building at 250 St Georges Tce Perth, has advertised widely in WA, offering new computers for $299 upfront, with delivery in 8 to 10 weeks.

Commissioner for Fair Trading Patrick Walker said investigations by the Ministry during the past week had revealed information about the company which consumers needed to be aware of.

This information included:
A director of the Australian company, Johnson Williamson, is also a director of a United Kingdom firm, Smartalk Limited, which until recently conducted a similar business in Britain. The UK firm has a Timothy John Rae as a director; there is a Tim Rae with Info4pc.com Pty Ltd in Perth who describes himself as CEO.

The British company is currently the subject of a UK Department of Trade and Industry petition in Britain’s High Court to wind up Smartalk Limited in the public interest. The petition follows inquiries by the DTI under that country’s Companies Act.

On the application of the Secretary of State in the United Kingdom the Court appointed the Official Receiver as provisional liquidator of Smartalk Limited pending the hearing of the petition on 22 November.

Smartalk Limited was incorporated on 21 January 1999 and traded from Leyland, Lancashire, selling computers which cost it approximately 535 Pounds each, to the public for 100 Pounds. Purchasers were required to commit to completing a "lifestyle" questionnaire every month for two years.

More information regarding this matter is available from the Department of Industry website at www2.dti.gov.uk. (under press notices, 6 October 2000)

Mr Walker said the Ministry was liaising with UK authorities, ASIC and other organisations in Australia.

He urged people thinking about buying a personal computer not to rush into any contract without examining the offer, then comparing it with other retailers’ offers.

"It’s sensible to offer a deposit of around 10% on any significant purchase, and also make sure you obtain and understand all terms and conditions of the 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.

Footnote:
The Minister for Fair Trading, issued a media release Minister warns on cheap computer offer on 16 November 2000, containing additional information on Info4PC.com

19 December 2000, the Ministry has obtained in Court an enforcable undertaking against Info4PC.com