Issue Date:  -  Friday, 29 August 2003

Consumers warned of shonky speaker sellers

Unknown dealers selling speakers from "the back of a truck" are ripping off consumers by attempting to sell $50 speakers for $1000 or more.

Patrick Walker, Consumer Protection Commissioner, said consumers need to be wary of dealers selling from the back of their vans.

"We have received information from consumers who have bought speakers for $1000 from two men in a white van in the areas of Winthrop, Cannington, Como and Bentley.

"The speakers they are selling are described on the box as AR 3000 Plasma Series Acoustic Reference, Home Theatre style. As yet these men are unknown however the Department has begun its investigation."

According to the Commissioner, the two men are in breach of the Door to Door Trading Act. Under the Act, consumers must be advised about the ten day 'cooling off' period. Accepting payment within the ten day cooling off period is not permitted under the Act. This provides consumers with a chance to properly consider the purchase.

The Department is also investigating alleged misrepresentation of the speakers and their supposed value. Fines for misleading conduct under the Fair Trading Act can amount to $20,000 for an individual to 100,000 for a business.

"Consumers are losing a lot of money out of this deal. We need to ensure other consumers are aware of these scamsters to avoid more consumers falling victim to their deception.

"We feel there may be more victims out there who are not aware of their rights. We want anyone who has been approached or has seen something suspicious to please contact Consumer Protection on 1300 30 40 54."

The Department has successfully prosecuted two similar fly by night traders in 1998 and 2000.