Fair Comment 7th edition
Welcome to the seventh edition of Fair Comment, the e-newsletter for NSW Fair Trading.
Send your questions or comments about this issue of Fair Comment to FairComment@services.nsw.gov.au
Find out about our other e-newsletters
Unsubscribe from Fair Comment.
Survey on interest free deals
Fair Trading has a new online survey on interest free deals. Many retailers and department stores offer interest free deals to buy electrical goods, furniture, computers, entertainment systems and many other items. Credit is usually provided by a finance company through the retail outlet.
The survey aims to find out how consumers buy goods with interest free deals, what information is provided to them and their overall satisfaction with the deal. The survey only takes 5 minutes to complete and can be found on the Fair Trading website. Your responses will help Fair Trading provide better information, useful advice and tips to consumers and traders on interest free deals. The survey closes on 21 July.
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Productivity Commission’s report on Australia’s Consumer Policy Framework
The Final Report of the Productivity Commission’s Review of Australia’s Consumer Policy Framework was released on 8 May. The central recommendation was that the Government should set up a new national consumer law, based on the consumer protection provisions of the Trade Practices Act 1974, and that it should be jointly enforced by the Australian Competition and Consumer Commission and State and Territory consumer regulators. The NSW Government supports the national generic consumer law and considers that the important service co-delivery role to be played by states and territories will enhance operation of the provisions.
At the recent Ministerial Council on Consumer Affairs (MCCA) meeting held on 23 May, Ministers committed to meeting the Council of Australian Governments’ deadline of October 2008 for developing new processes to improve the consumer policy framework (including legislative and regulatory structures), based on the Commission’s Final Report. Ministers also welcomed the opportunity to work together to develop a world-leading consumer policy framework to benefit Australian consumers and the Australian community in general.
These reforms would deliver better outcomes for consumers, lower costs for businesses and more speedily tackle practices that harm consumers. Ministers also agreed that the new national approach to consumer policy within Australia would have flow on benefits for consumers in New Zealand.
In response to the Productivity Commission's report Ministers agreed in principle to:
National personal property securities law reform – opportunity for public comment
On 16 May the Commonwealth Attorney General released a consultation draft of a Bill that will integrate all current legislation dealing with securities over personal property. The reform of these laws is currently a major regulatory issue for the Council of Australian Government.
Currently, there are more than 70 different Commonwealth, State and Territory Acts governing the creation, regulation and registration of personal property securities, together with many separate registers.
The Bill aims to simplify the process and to decrease the cost to business and consumers by proposing major reforms to the law. It will create a single national Act regulating all forms of personal property securities, including the establishment of clear rules as to priorities between competing secured interests, and will be supported by a single online securities register.
Personal property is any form of property other than land or buildings. It includes all forms of physical property – goods (such as motor vehicles, machinery, stock in trade, furniture, works of art), currency, crops and livestock, fixtures (such as a telephone system), and also intangible property such as contract rights and intellectual property rights (for example, trademarks and patents).
When a consumer or business borrows money, the financier often takes a security interest over personal property as security for that loan or to secure the performance of an obligation. There are many types of transactions that create a security interest, for example, mortgages, hire purchase, conditional sales, commercial consignments and retention of title arrangements.
Many people are currently affected by these laws, from consumers borrowing money to buy goods such as a car, businesses borrowing money to expand or just operate day to day, investors or purchasers looking to buy a business which may already owe money over its assets, businesses providing goods or services to other businesses, financial institutions providing money.
The proposed reforms will affect a wide cross section of businesses and consumers. Many consumers and businesses are already familiar with State-based vehicle securities registers such as REVS. These reforms will replace these registers with a single national system, hence providing uniform national information.
The Commonwealth has invited public comments on the draft Personal Property Securities Bill. The Bill, together with a Commentary and the proposed transitional legislation can be accessed at www.ag.gov.au/pps
All comments should be received no later than 15 August 2008 and can be sent directly to the Commonwealth at:
E-mail: pps@ag.gov.au
Fax: (02) 6250 5978
Mail: Assistant Secretary
Personal Property Securities
Australian Attorney General’s Department
Robert Garran Offices
National Circuit
BARTON ACT 2600
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Update on Home building licensing improvements
In the past year, the Office of Fair Trading has implemented initiatives to make it easier for contractors to apply for their home building licences or renewals. These changes include:
Continuing Professional Development (CPD)
From 1 January 2008, builders and pool builders switch to the new 12-point CPD system on the date the licence is renewed. This simpler system replaces the previous 25-point per year system. Those with a 3-year licence switch to the new system on the first anniversary of the date the 3-year licence commenced. Also, throughout this year Fair Trading will conduct 24 free CPD seminars in metropolitan and regional NSW locations. Builders and pool builders attending a seminar will earn 2 CPD points (or 4 points under the old CPD system).
Three year licences
Traditionally, all building and trade contractor licences have been required to be renewed on an annual basis. In line with the State Plan’s direction of cutting red tape, Fair Trading has introduced the option of allowing licensees to renew their licence for three years. Licensees who take up the three year licence options can save approximately 20% of their licence fee. The Home Building Service has offered three-year licence renewals since July 2007.
Proof of home warranty insurance
Also since 1 July 2007, Fair Trading no longer requires licence holders to provide proof of home warranty insurance eligibility. Instead, Fair Trading receives this information directly from insurers and immediately places the details onto the public register. Having an up to date and accurate record of insurance eligibility improves consumer awareness and protection.
Government Licensing Project
A major project currently underway is the implementation of the Government Licensing System (GLS). The government licensing project is a New South Wales Government initiative developed to implement a generic licensing system, known as GLS, across the entire NSW Government sector. The system was implemented in Fair Trading’s Home Building Service in November 2007. A benefit of the new system includes the ability for builder and tradespeople to renew licences on-line. GLS will soon provide the capacity to automatically request checks on police criminal history of all applicants for home building licences. A further development, to be introduced in late 2008, will provide self service capacity to licence holders to enable them to make changes to their licence details over the internet using GLS.
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An unlicensed builder could cost you your home
On June 6, Fair Trading Minister, Linda Burney launched an education campaign for culturally and linguistically diverse communities on the dangers of using unlicensed tradespeople and builders.
Ms Burney urged consumers to not respond to newspaper advertisements for tradespeople that don’t include their licence number. Under Fair Trading law, it is necessary for licensed tradespeople to post advertisements which display their licence number.
It is important to check the licence of tradespeople and builders before you get work done on your home. It may be reassuring to choose a tradesperson based on the recommendation from a friend or relative, or on the fact that they speak the same language. But, if something goes wrong and they do not have a licence, you don’t have the protection of the Home Building Act or access to Fair Trading’s dispute resolution process.
Fair Trading regularly visits building sites and their investigations show that over 60 per cent of all penalty notices they issue are to unlicensed tradespeople.
Newspapers will be contacted about their responsibilities and Fair Trading will be urging them to support the campaign by encouraging tradespeople who advertise with them to include their licence details.
Visit the Fair Trading website or call 13 32 20 to do a licence check the next time you think of building or renovating.
Back to top
Sorry message for Aboriginal Reconciliation Week
Reconciliation Week is a national event that occurs from 27 May to 3 June each year and provides the opportunity to focus on the rich heritage of Aboriginal people, and allows all Australians to reflect on past achievements, as well as future directions.
This year’s theme for NSW Reconciliation was ‘Sorry - A New Beginning’. The theme was inspired by the National Apology made in February by Prime Minister Kevin Rudd.
Representatives from Fair Trading and a number of other government agencies organised a community function at Belmore Park on 2 June to celebrate and promote Reconciliation Week to the wider community and to highlight Indigenous issues such as the stolen generation.
Parramatta Fair Trading Centre organised a traditional bush tucker morning tea in celebration of Aboriginal culture and heritage for Reconciliation Week. Aboriginal Customer Service Officers from Fair Trading centres across the state coordinated a number of activities to enable all staff and the community to embrace and celebrate Reconciliation Week.
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Named and shamed for unlicensed dealing and odometer windbacks
Mr Abdel Rahman Hachem Kassem and Mrs Amira Kassem
Abdel Rahman Hachem Kassem was charged before Parramatta Local Court with unlicensed motor dealing involving seven motor vehicles and five offences of odometer interference under the Motor Dealers Act. Reductions to odometer readings ranged from 83,398 to 211,655 kilometres. His wife, Amira Kassem was also charged at the same court, with unlicensed motor vehicle dealing involving five vehicles and three offences of odometer interference under the Motor Dealers Act. Her odometer reductions ranged from 99,363 to 130,244 kilometres.
Both Mr and Mrs Kassem pleaded not guilty and the matters were set down for hearing through their legal representation. On the day of hearing in May 2008, neither Mr nor Mrs Kassem attended court and the matters were dealt with ex-parte (in the absence of the defendant). All offences were proven and convictions recorded. Mr and Mrs Kassem were ordered to pay fines, forfeiture of proceeds, compensation and costs totalling $107,450.55.
Ms Joumana Maassarani
Joumana Maassarani was charged before Parramatta Local Court with unlicensed motor dealing involving 23 motor vehicles over a two year period and 16 offences of odometer interference under the Motor Dealers Act. Reductions to odometer readings ranged from 46,487 to 142,455 kilometres. The vehicles were then sold to unsuspecting consumers. Maassarani did not appear in court and the matter proceeded ex-parte. Maassarani was convicted and imposed fines, forfeiture of proceeds, compensation orders and costs totalling $141,640.00.
Mr Nouraldine Chamma
Nouraldine Chamma was charged before Burwood Local Court with five offences of odometer interferences under the Motor Dealers Act. Reductions to the odometer readings ranged from 79,000 to 253,000 kilometres. The vehicles were then sold to unsuspecting consumers. Investigators discovered the conduct whilst making inquiries into a matter involving unlicensed motor vehicle dealing.
In March 2008, Chamma initially pleaded not guilty but then changed his plea to guilty on the day of hearing. The Court convicted Chamma for five offences of odometer interference and ordered him to pay fines, compensation orders and costs totalling $20,455.44.
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When natural therapies are not a good alternative
In April 2008, the NSW Supreme Court permanently banned disgraced natural therapies practitioner, Jeremiah Jeffrey Hunter from providing a wide range of health services.
Previously known as Jeffrey Dummett, he changed his name to Jeremiah Jeffrey Hunter in 2002 and relocated from Oatley to Manly to keep his dodgy business going. Offering alternative health services, Hunter made false claims about being able to cure the sick.
Hunter’s life ban prevents him from being involved in any business that offers naturopathy, medical herbalism, herbalism, iridology, hydrotherapy, sports medicine, osteopathy, blood analysis, and diet or nutrition advice in the treatment and prevention of illness.
He is also permanently banned from using in any way, in trade or commerce, the doctorate of philosophy gained in 1998 by the Faculty of Medical Studies, Medicina Alternativa Institute.
Alternative health remedies are used and valued by many people, but consumers need to be cautious and do their research on the remedies being offered and the people offering them.
This case is the second success in six months for Fair Trading in stopping dodgy alternative health practitioners, following the permanent ban on Newcastle-based Paul Perrett in October 2007.
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VAIG - not a pretty picture!
Visual Arts Imaging Gallery (VAIG) offers studio style photographic services to the public by advertising on radio and television and through promotional stands in shopping centres and events such as Sexpo and the Royal Easter Show.
Since 2005, the Office of Fair Trading has received over 60 consumer complaints or enquiries regarding VAIG. The complaints concern misleading or deceptive business practices, the use of high pressure sales techniques, offering prizes with no intention of providing them, producing poor quality photographs, charging very high prices for its products and locking financially vulnerable consumers into contracts they could not afford.
Following extensive inquiries and a meeting with the company’s senior management, VAIG is willing to address the causes of complaint and indicated it wanted to resolve the issues by entering into enforceable undertakings with the Commissioner for Fair Trading under section 73A of the Fair Trading Act 1987.
Under this legal agreement, VAIG undertakes to carry out specific activities developed to include corrective compliance and audit systems. The undertakings were signed by the directors earlier this year and are in force for a period of five years.
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Publishing King’s scam
On 2 May 2008 the Supreme Court of New South Wales issued orders restraining Kent Publishing Pty Ltd and its sole director/secretary Dean James King.
Kent Publishing published or claimed to publish a number of national directories and magazines with industrial or tourist themes such as Industrial Safety Gazette, National Travel and Tourism Guide and the National Business and Trade Guide.
Fair Trading received over 80 complaints mostly from small businesses claiming that they had been duped by Kent Publishing telemarketers.
By agreement, Kent Publishing and King admitted that between 1 July 2004 and 27 February 2008 it had engaged in misleading or deceptive conduct. The defendants also admitted to a false billing scam during the same period. Fair Trading has estimated that Kent Publishing was receiving between $40,000 and $50,000 a week through the scam.
False billing, also known as invoice fraud, is a common scam and occurs where a trader demands payment for goods or services, including advertisements and business directory listings, from a person or business that did not authorise or agree to purchase those goods or services.
The Court orders are consistent with important amendments to the Fair Trading Act that commenced on 1 July 2007 significantly strengthening controls over false billing conduct. It is now prohibited to demand payment for publishing an advertisement without written authority or to send a document stating the price unless it prominently states – "THIS IS NOT A BILL. YOU ARE NOT REQUIRED TO PAY ANY MONEY".
The orders require both Kent Publishing and Dean James King to comply with the provisions of the Fair Trading Act that relate to false billing conduct. Should they not comply with the orders, they are likely to have their property confiscated and be imprisoned.
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Metropolitan education, information and community programs
Every month staff from the Fair Trading Customer Services Division, conduct information and education sessions for consumers and traders. These sessions ensure individuals and traders understand their rights and obligations which will assist them to function more effectively in the marketplace.
In the last three months, over 200 community events were conducted across the State of NSW with over 6,000 individuals participating, which included 113 events and 4,688 individuals participating in Metropolitan Sydney.
The Auburn and Lidcombe Community Access Program was held in May. Sessions included a range of seminars for home building, incorporated associations, real estate agents, seniors, school children and self managed landlords. A one day information campaign and expo specifically targeting community workers was attended by both government and non government organisations. This offered an opportunity for the community to network and raise awareness of the services available in their local area.
A major compliance program was also conducted during May in the Auburn and Lidcombe area, which included business and automotive inspection programs, compliance checks of local businesses, testing the accuracy of petrol pumps, liquor dispensers and retail measuring instruments and conducting electrical checks to ensure goods complied with safety requirements.
A total of 734 Inspections were conducted which resulted in a minimal number of warnings and infringement notices issued.
For information regarding future events in your area, you can contact your local Fair Trading Centre.
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Super RAPs - Regional Access Programs
Fair Trading’s Regional Access Program brings services to consumers, traders, community groups, schools and other local organisations in regional and rural areas. The program includes information stalls in shopping centres and main streets, visits to retailers, seminars to small businesses, incorporated associations, landlords, tenants, builders and tradespeople, real estate agents and school presentations.
Compliance activities are an integral part of the Regional Access Program, with inspectors visiting licensed premises and conducting general and specific inspections.
As part of a state wide education and compliance program, Fair Trading recently conducted three Super Regional Access Programs in Albury, Coffs Harbour and Forster. Inspectors visited a total of 747 traders, making sure they were meeting their legal obligations. The compliance blitz resulted in a total of 77 penalty infringement notices issued to traders for various breaches of the law.
Offending traders are warned about their breaches and reminded that there will be follow up visits to ensure that all problems have been rectified.
Fair Trading will continue to conduct regular compliance and education campaigns across NSW to ensure that consumers are well informed of their rights and traders are meeting their obligations under the law.
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Joint investigation with Tasmania
One of the regulatory functions carried out by the Registry of Co-operatives & Associations is to undertake inspections and inquiries of co-operatives, co-operative housing societies, Starr-Bowkett societies and where necessary incorporated associations.
Earlier this year, the Department of Justice in Tasmania contacted the Registry for assistance to conduct an investigation into a co-operative on behalf of Tasmanian Fair Trading and Consumer Affairs. This joint venture was welcomed as an ideal opportunity for regulators from different jurisdictions to share knowledge and expertise.
A Registry financial analyst/inspector was appointed as an investigator under the Tasmanian Co-operatives Act to hold a full inquiry into the co-operative concerned and to report to the Tasmanian Commissioner for Corporate Affairs in accordance with the terms and conditions set out in the instrument of appointment.
The investigation was conducted early this year, with the assistance of the Manager of Compliance, Tasmania Fair Trading and Consumer Affairs. A formal report has now been finalised including recommendations to the Tasmanian Commissioner for Corporate Affairs.
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Using a conveyancer
If you are buying or selling property, you will need to sign a contract. The legal work involved in preparing the sales contract, mortgage and other related documents is called conveyancing. It is possible to do your own conveyancing, but most people get a licensed conveyancer or solicitor to do the work for them. All conveyancers must be licensed with the Office of Fair Trading.
To protect yourself if things go wrong, it is important to always do a licence check before using a conveyancer. Dealing with a licensed conveyancer also protects you if the money you have entrusted to them goes missing. Licensed conveyancers must have professional indemnity insurance to protect you in case they make a mistake or are careless in their work.
One of the services that Fair Trading offers is the online Conveyancers Licence Check facility. The Conveyancers Licence Check registers information relating to conveyancers’ licences including:
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Welcome to the seventh edition of Fair Comment, the e-newsletter for NSW Fair Trading.
Send your questions or comments about this issue of Fair Comment to FairComment@services.nsw.gov.au
Find out about our other e-newsletters
Unsubscribe from Fair Comment.
Survey on interest free deals
Fair Trading has a new online survey on interest free deals. Many retailers and department stores offer interest free deals to buy electrical goods, furniture, computers, entertainment systems and many other items. Credit is usually provided by a finance company through the retail outlet.
The survey aims to find out how consumers buy goods with interest free deals, what information is provided to them and their overall satisfaction with the deal. The survey only takes 5 minutes to complete and can be found on the Fair Trading website. Your responses will help Fair Trading provide better information, useful advice and tips to consumers and traders on interest free deals. The survey closes on 21 July.
Back to top
Productivity Commission’s report on Australia’s Consumer Policy Framework
The Final Report of the Productivity Commission’s Review of Australia’s Consumer Policy Framework was released on 8 May. The central recommendation was that the Government should set up a new national consumer law, based on the consumer protection provisions of the Trade Practices Act 1974, and that it should be jointly enforced by the Australian Competition and Consumer Commission and State and Territory consumer regulators. The NSW Government supports the national generic consumer law and considers that the important service co-delivery role to be played by states and territories will enhance operation of the provisions.
At the recent Ministerial Council on Consumer Affairs (MCCA) meeting held on 23 May, Ministers committed to meeting the Council of Australian Governments’ deadline of October 2008 for developing new processes to improve the consumer policy framework (including legislative and regulatory structures), based on the Commission’s Final Report. Ministers also welcomed the opportunity to work together to develop a world-leading consumer policy framework to benefit Australian consumers and the Australian community in general.
These reforms would deliver better outcomes for consumers, lower costs for businesses and more speedily tackle practices that harm consumers. Ministers also agreed that the new national approach to consumer policy within Australia would have flow on benefits for consumers in New Zealand.
In response to the Productivity Commission's report Ministers agreed in principle to:
- adopt a common overarching objective and supporting operational objectives for Australian consumer policy based on the Commission’s recommendations
- support the development and implementation of a new national harmonised, generic consumer law to apply in all Australian jurisdictions
- identify aspects of State/Territory fair trading laws which should be retained as part of a national generic law
- start an assessment and consultation process of elements to be included in a new law and what the best model should be
- enforce the new national generic consumer law by the Australian Competition and Consumer Commission (ACCC) and State and Territory consumer regulators
- implement a nationally harmonised system of product safety regulation
- develop an improved framework for the regulation and enforcement of credit – subject to recommendations of a soon to be released Green Paper on this issue.
- observe the recommendation that COAG’s Business Regulation and Competition Working Group, in consultation with the Ministerial Council on Consumer Affairs, should start and oversee a review and reform program for trade licensing and industry-specific consumer regulation
- the Standing Committee of Officials of Consumer Affairs progressing a response to the Productivity Commission’s Final Report and report to MCCA
- give further consideration to establishing a framework to provide better advice to Ministers on important upcoming consumer policy issues and an improved research capacity and consultation mechanisms
- meet in August 2008 to agree on an MCCA response to the Commission’s recommendations for submission to COAG in October.
National personal property securities law reform – opportunity for public comment
On 16 May the Commonwealth Attorney General released a consultation draft of a Bill that will integrate all current legislation dealing with securities over personal property. The reform of these laws is currently a major regulatory issue for the Council of Australian Government.
Currently, there are more than 70 different Commonwealth, State and Territory Acts governing the creation, regulation and registration of personal property securities, together with many separate registers.
The Bill aims to simplify the process and to decrease the cost to business and consumers by proposing major reforms to the law. It will create a single national Act regulating all forms of personal property securities, including the establishment of clear rules as to priorities between competing secured interests, and will be supported by a single online securities register.
Personal property is any form of property other than land or buildings. It includes all forms of physical property – goods (such as motor vehicles, machinery, stock in trade, furniture, works of art), currency, crops and livestock, fixtures (such as a telephone system), and also intangible property such as contract rights and intellectual property rights (for example, trademarks and patents).
When a consumer or business borrows money, the financier often takes a security interest over personal property as security for that loan or to secure the performance of an obligation. There are many types of transactions that create a security interest, for example, mortgages, hire purchase, conditional sales, commercial consignments and retention of title arrangements.
Many people are currently affected by these laws, from consumers borrowing money to buy goods such as a car, businesses borrowing money to expand or just operate day to day, investors or purchasers looking to buy a business which may already owe money over its assets, businesses providing goods or services to other businesses, financial institutions providing money.
The proposed reforms will affect a wide cross section of businesses and consumers. Many consumers and businesses are already familiar with State-based vehicle securities registers such as REVS. These reforms will replace these registers with a single national system, hence providing uniform national information.
The Commonwealth has invited public comments on the draft Personal Property Securities Bill. The Bill, together with a Commentary and the proposed transitional legislation can be accessed at www.ag.gov.au/pps
All comments should be received no later than 15 August 2008 and can be sent directly to the Commonwealth at:
E-mail: pps@ag.gov.au
Fax: (02) 6250 5978
Mail: Assistant Secretary
Personal Property Securities
Australian Attorney General’s Department
Robert Garran Offices
National Circuit
BARTON ACT 2600
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Update on Home building licensing improvements
In the past year, the Office of Fair Trading has implemented initiatives to make it easier for contractors to apply for their home building licences or renewals. These changes include:
Continuing Professional Development (CPD)
From 1 January 2008, builders and pool builders switch to the new 12-point CPD system on the date the licence is renewed. This simpler system replaces the previous 25-point per year system. Those with a 3-year licence switch to the new system on the first anniversary of the date the 3-year licence commenced. Also, throughout this year Fair Trading will conduct 24 free CPD seminars in metropolitan and regional NSW locations. Builders and pool builders attending a seminar will earn 2 CPD points (or 4 points under the old CPD system).
Three year licences
Traditionally, all building and trade contractor licences have been required to be renewed on an annual basis. In line with the State Plan’s direction of cutting red tape, Fair Trading has introduced the option of allowing licensees to renew their licence for three years. Licensees who take up the three year licence options can save approximately 20% of their licence fee. The Home Building Service has offered three-year licence renewals since July 2007.
Proof of home warranty insurance
Also since 1 July 2007, Fair Trading no longer requires licence holders to provide proof of home warranty insurance eligibility. Instead, Fair Trading receives this information directly from insurers and immediately places the details onto the public register. Having an up to date and accurate record of insurance eligibility improves consumer awareness and protection.
Government Licensing Project
A major project currently underway is the implementation of the Government Licensing System (GLS). The government licensing project is a New South Wales Government initiative developed to implement a generic licensing system, known as GLS, across the entire NSW Government sector. The system was implemented in Fair Trading’s Home Building Service in November 2007. A benefit of the new system includes the ability for builder and tradespeople to renew licences on-line. GLS will soon provide the capacity to automatically request checks on police criminal history of all applicants for home building licences. A further development, to be introduced in late 2008, will provide self service capacity to licence holders to enable them to make changes to their licence details over the internet using GLS.
Back to top
An unlicensed builder could cost you your home
On June 6, Fair Trading Minister, Linda Burney launched an education campaign for culturally and linguistically diverse communities on the dangers of using unlicensed tradespeople and builders.
Ms Burney urged consumers to not respond to newspaper advertisements for tradespeople that don’t include their licence number. Under Fair Trading law, it is necessary for licensed tradespeople to post advertisements which display their licence number.
It is important to check the licence of tradespeople and builders before you get work done on your home. It may be reassuring to choose a tradesperson based on the recommendation from a friend or relative, or on the fact that they speak the same language. But, if something goes wrong and they do not have a licence, you don’t have the protection of the Home Building Act or access to Fair Trading’s dispute resolution process.
Fair Trading regularly visits building sites and their investigations show that over 60 per cent of all penalty notices they issue are to unlicensed tradespeople.
Newspapers will be contacted about their responsibilities and Fair Trading will be urging them to support the campaign by encouraging tradespeople who advertise with them to include their licence details.
Visit the Fair Trading website or call 13 32 20 to do a licence check the next time you think of building or renovating.
Back to top
Sorry message for Aboriginal Reconciliation Week
Reconciliation Week is a national event that occurs from 27 May to 3 June each year and provides the opportunity to focus on the rich heritage of Aboriginal people, and allows all Australians to reflect on past achievements, as well as future directions.
This year’s theme for NSW Reconciliation was ‘Sorry - A New Beginning’. The theme was inspired by the National Apology made in February by Prime Minister Kevin Rudd.
Representatives from Fair Trading and a number of other government agencies organised a community function at Belmore Park on 2 June to celebrate and promote Reconciliation Week to the wider community and to highlight Indigenous issues such as the stolen generation.
Parramatta Fair Trading Centre organised a traditional bush tucker morning tea in celebration of Aboriginal culture and heritage for Reconciliation Week. Aboriginal Customer Service Officers from Fair Trading centres across the state coordinated a number of activities to enable all staff and the community to embrace and celebrate Reconciliation Week.
Back to top
Named and shamed for unlicensed dealing and odometer windbacks
Mr Abdel Rahman Hachem Kassem and Mrs Amira Kassem
Abdel Rahman Hachem Kassem was charged before Parramatta Local Court with unlicensed motor dealing involving seven motor vehicles and five offences of odometer interference under the Motor Dealers Act. Reductions to odometer readings ranged from 83,398 to 211,655 kilometres. His wife, Amira Kassem was also charged at the same court, with unlicensed motor vehicle dealing involving five vehicles and three offences of odometer interference under the Motor Dealers Act. Her odometer reductions ranged from 99,363 to 130,244 kilometres.
Both Mr and Mrs Kassem pleaded not guilty and the matters were set down for hearing through their legal representation. On the day of hearing in May 2008, neither Mr nor Mrs Kassem attended court and the matters were dealt with ex-parte (in the absence of the defendant). All offences were proven and convictions recorded. Mr and Mrs Kassem were ordered to pay fines, forfeiture of proceeds, compensation and costs totalling $107,450.55.
Ms Joumana Maassarani
Joumana Maassarani was charged before Parramatta Local Court with unlicensed motor dealing involving 23 motor vehicles over a two year period and 16 offences of odometer interference under the Motor Dealers Act. Reductions to odometer readings ranged from 46,487 to 142,455 kilometres. The vehicles were then sold to unsuspecting consumers. Maassarani did not appear in court and the matter proceeded ex-parte. Maassarani was convicted and imposed fines, forfeiture of proceeds, compensation orders and costs totalling $141,640.00.
Mr Nouraldine Chamma
Nouraldine Chamma was charged before Burwood Local Court with five offences of odometer interferences under the Motor Dealers Act. Reductions to the odometer readings ranged from 79,000 to 253,000 kilometres. The vehicles were then sold to unsuspecting consumers. Investigators discovered the conduct whilst making inquiries into a matter involving unlicensed motor vehicle dealing.
In March 2008, Chamma initially pleaded not guilty but then changed his plea to guilty on the day of hearing. The Court convicted Chamma for five offences of odometer interference and ordered him to pay fines, compensation orders and costs totalling $20,455.44.
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When natural therapies are not a good alternative
In April 2008, the NSW Supreme Court permanently banned disgraced natural therapies practitioner, Jeremiah Jeffrey Hunter from providing a wide range of health services.
Previously known as Jeffrey Dummett, he changed his name to Jeremiah Jeffrey Hunter in 2002 and relocated from Oatley to Manly to keep his dodgy business going. Offering alternative health services, Hunter made false claims about being able to cure the sick.
Hunter’s life ban prevents him from being involved in any business that offers naturopathy, medical herbalism, herbalism, iridology, hydrotherapy, sports medicine, osteopathy, blood analysis, and diet or nutrition advice in the treatment and prevention of illness.
He is also permanently banned from using in any way, in trade or commerce, the doctorate of philosophy gained in 1998 by the Faculty of Medical Studies, Medicina Alternativa Institute.
Alternative health remedies are used and valued by many people, but consumers need to be cautious and do their research on the remedies being offered and the people offering them.
This case is the second success in six months for Fair Trading in stopping dodgy alternative health practitioners, following the permanent ban on Newcastle-based Paul Perrett in October 2007.
Back to top
VAIG - not a pretty picture!
Visual Arts Imaging Gallery (VAIG) offers studio style photographic services to the public by advertising on radio and television and through promotional stands in shopping centres and events such as Sexpo and the Royal Easter Show.
Since 2005, the Office of Fair Trading has received over 60 consumer complaints or enquiries regarding VAIG. The complaints concern misleading or deceptive business practices, the use of high pressure sales techniques, offering prizes with no intention of providing them, producing poor quality photographs, charging very high prices for its products and locking financially vulnerable consumers into contracts they could not afford.
Following extensive inquiries and a meeting with the company’s senior management, VAIG is willing to address the causes of complaint and indicated it wanted to resolve the issues by entering into enforceable undertakings with the Commissioner for Fair Trading under section 73A of the Fair Trading Act 1987.
Under this legal agreement, VAIG undertakes to carry out specific activities developed to include corrective compliance and audit systems. The undertakings were signed by the directors earlier this year and are in force for a period of five years.
Back to top
Publishing King’s scam
On 2 May 2008 the Supreme Court of New South Wales issued orders restraining Kent Publishing Pty Ltd and its sole director/secretary Dean James King.
Kent Publishing published or claimed to publish a number of national directories and magazines with industrial or tourist themes such as Industrial Safety Gazette, National Travel and Tourism Guide and the National Business and Trade Guide.
Fair Trading received over 80 complaints mostly from small businesses claiming that they had been duped by Kent Publishing telemarketers.
By agreement, Kent Publishing and King admitted that between 1 July 2004 and 27 February 2008 it had engaged in misleading or deceptive conduct. The defendants also admitted to a false billing scam during the same period. Fair Trading has estimated that Kent Publishing was receiving between $40,000 and $50,000 a week through the scam.
False billing, also known as invoice fraud, is a common scam and occurs where a trader demands payment for goods or services, including advertisements and business directory listings, from a person or business that did not authorise or agree to purchase those goods or services.
The Court orders are consistent with important amendments to the Fair Trading Act that commenced on 1 July 2007 significantly strengthening controls over false billing conduct. It is now prohibited to demand payment for publishing an advertisement without written authority or to send a document stating the price unless it prominently states – "THIS IS NOT A BILL. YOU ARE NOT REQUIRED TO PAY ANY MONEY".
The orders require both Kent Publishing and Dean James King to comply with the provisions of the Fair Trading Act that relate to false billing conduct. Should they not comply with the orders, they are likely to have their property confiscated and be imprisoned.
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Metropolitan education, information and community programs
Every month staff from the Fair Trading Customer Services Division, conduct information and education sessions for consumers and traders. These sessions ensure individuals and traders understand their rights and obligations which will assist them to function more effectively in the marketplace.
In the last three months, over 200 community events were conducted across the State of NSW with over 6,000 individuals participating, which included 113 events and 4,688 individuals participating in Metropolitan Sydney.
The Auburn and Lidcombe Community Access Program was held in May. Sessions included a range of seminars for home building, incorporated associations, real estate agents, seniors, school children and self managed landlords. A one day information campaign and expo specifically targeting community workers was attended by both government and non government organisations. This offered an opportunity for the community to network and raise awareness of the services available in their local area.
A major compliance program was also conducted during May in the Auburn and Lidcombe area, which included business and automotive inspection programs, compliance checks of local businesses, testing the accuracy of petrol pumps, liquor dispensers and retail measuring instruments and conducting electrical checks to ensure goods complied with safety requirements.
A total of 734 Inspections were conducted which resulted in a minimal number of warnings and infringement notices issued.
For information regarding future events in your area, you can contact your local Fair Trading Centre.
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Super RAPs - Regional Access Programs
Fair Trading’s Regional Access Program brings services to consumers, traders, community groups, schools and other local organisations in regional and rural areas. The program includes information stalls in shopping centres and main streets, visits to retailers, seminars to small businesses, incorporated associations, landlords, tenants, builders and tradespeople, real estate agents and school presentations.
Compliance activities are an integral part of the Regional Access Program, with inspectors visiting licensed premises and conducting general and specific inspections.
As part of a state wide education and compliance program, Fair Trading recently conducted three Super Regional Access Programs in Albury, Coffs Harbour and Forster. Inspectors visited a total of 747 traders, making sure they were meeting their legal obligations. The compliance blitz resulted in a total of 77 penalty infringement notices issued to traders for various breaches of the law.
Offending traders are warned about their breaches and reminded that there will be follow up visits to ensure that all problems have been rectified.
Fair Trading will continue to conduct regular compliance and education campaigns across NSW to ensure that consumers are well informed of their rights and traders are meeting their obligations under the law.
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Joint investigation with Tasmania
One of the regulatory functions carried out by the Registry of Co-operatives & Associations is to undertake inspections and inquiries of co-operatives, co-operative housing societies, Starr-Bowkett societies and where necessary incorporated associations.
Earlier this year, the Department of Justice in Tasmania contacted the Registry for assistance to conduct an investigation into a co-operative on behalf of Tasmanian Fair Trading and Consumer Affairs. This joint venture was welcomed as an ideal opportunity for regulators from different jurisdictions to share knowledge and expertise.
A Registry financial analyst/inspector was appointed as an investigator under the Tasmanian Co-operatives Act to hold a full inquiry into the co-operative concerned and to report to the Tasmanian Commissioner for Corporate Affairs in accordance with the terms and conditions set out in the instrument of appointment.
The investigation was conducted early this year, with the assistance of the Manager of Compliance, Tasmania Fair Trading and Consumer Affairs. A formal report has now been finalised including recommendations to the Tasmanian Commissioner for Corporate Affairs.
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Using a conveyancer
If you are buying or selling property, you will need to sign a contract. The legal work involved in preparing the sales contract, mortgage and other related documents is called conveyancing. It is possible to do your own conveyancing, but most people get a licensed conveyancer or solicitor to do the work for them. All conveyancers must be licensed with the Office of Fair Trading.
To protect yourself if things go wrong, it is important to always do a licence check before using a conveyancer. Dealing with a licensed conveyancer also protects you if the money you have entrusted to them goes missing. Licensed conveyancers must have professional indemnity insurance to protect you in case they make a mistake or are careless in their work.
One of the services that Fair Trading offers is the online Conveyancers Licence Check facility. The Conveyancers Licence Check registers information relating to conveyancers’ licences including:
- name and business address of the holder
- the licence number
- date of issue and expiry
- details of any disciplinary action taken against the licence holder.
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