Consumers lose out as online trader collapses
Issue Date: - Friday, 11 January 2008
A Nedlands-based business selling computer hardware online has gone into administration leaving up to 800 consumers out-of-pocket Australia-wide.
Zoom ITG Pty Ltd, trading as Nintek, has been placed into the hands of an administrator, Dickson Carrello Chartered Accountants.
Consumer Protection Commissioner Patrick Walker said it appears highly unlikely consumers will get their money back after paying between $30 and $3000 for goods they never received.
"Nintek described itself on its website as Australia's premier online computer hardware retailer but the reality was far different," Mr Walker said.
"In the past 12 months, Consumer Protection has received complaints about this business, mostly relating to failure to deliver goods or delays in delivering goods.
"We have been able to resolve most complaints up until this point after seeking undertakings from the company that they would address customer complaints and take appropriate steps to ensure these matters did not escalate," he said.
"We are very disappointed by this collapse because the company was cooperating with our investigations and settling complaints but now there will be significant consumer losses."
Mr Walker said consumers who have ordered and not received goods, or are waiting on refunds, are unsecured creditors and must lodge their proof of debt with the administrator. They can provide their details to the administrator on 6363 7777. A meeting of creditors will be held on 24 January.
"Consumers who have already registered complaints with us, that remain unresolved, will be contacted soon by the administrator," Mr Walker said.
"The administrator has advised us that he has seized stock. Goods will be provided to customers where it can be established that they are the legal owner. However the administrator believes it is highly unlikely that consumers will get their money back.
"We are advising people who paid by credit card and have not received their goods to contact their bank to see if they can have their transaction reversed."
The Nintek collapse follows hard-on-the-heels of a public warning about another Nedlands-based online trader.
Last month, Consumer Protection warned consumers not to deal with Are-Jays Electronics, which sells electronic equipment such as digital cameras and mobile phones.
"Consumers have complained that this trader has failed to supply goods that had been paid for, supplied faulty goods and offered no redress, and ignored numerous customer's emails and telephone calls," Mr Walker said. "Despite assurances to this department, Are-Jays have not made good their promises to improve their business practices.
"We reiterate our warning that consumers should have nothing to do with Are-Jays Electronics and to contact us if they have outstanding consumer issues.
"These two instances show consumers need to be careful when buying goods online," Mr Walker said. "Buying from the net is convenient and can result in savings but consumers need to be aware of the risks.
"Consumers should always research the reputation of a trader before purchasing goods, particularly online. Website blogs and forums often contain stories about other consumers' shopping experiences."