White van scammers face the music
4 March 2011
Fair Trading Deputy Commissioner Steve Griffin today said a Sydney-based company selling inferior home theatre projectors and audio equipment from white vans has been ordered to pay $23,179 in fines, costs and compensation by Parramatta Local Court.
Mr Griffin said Rock N Roll Distributors Pty Ltd, trading as Quick Silver Distribution, was today convicted of nine counts of breaching section 44(e) of the Fair Trading Act 1987 for engaging in false and misleading conduct.
“Fair Trading issued a public warning about the company in October last year after receiving numerous complaints about their business practices and sale of substandard electrical goods,” he said.
“They operated a fleet of vans with sellers approaching people on the street or in car parks claiming to have excess stock to unload at prices that were a fraction of the retail cost.
“The equipment was of poor quality, with little or no value and was a potential fire risk due to potential overheating of the projectors.
“In some cases, consumers paid thousands of dollars for supposedly high end goods when in fact the estimated value of the goods was between $150 and $250.”
Mr Griffin said this was an elaborate scam intended to fleece as much money as possible from unsuspecting consumers.
“The goods were packaged using fake brand names and false statements, including that the equipment has received various, non-existent industry awards,” he said.
“They used high pressure tactics and preyed on people’s love of a bargain.”
Mr Griffin applauded the result saying it sent a strong message to the community and traders not to engage in criminal behaviour or face severe penalties.
“Consumers expect their dealings with businesses to be conducted in an ethical and professional manner and Fair Trading will work tirelessly to protect their interests,” he said.
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