Matt Johnston, Claire Connelly
News Limited Network
December 13, 2012
FAKE product reviews, online voucher rip-offs and confusing phone or utility contracts will be targeted by the consumer watchdog in a new-year crackdown.
A flurry of complaints about businesses taking advantage of customers or other companies has led to a change of focus for the Australian Competition and Consumer Commission.
The watchdog will keep scrutinising door to door selling, which led to fines of $1 million this year, as well as companies dodging consumer guarantees.
More court cases are expected in 2013, the ACCC chair Rod Sims told News Ltd in an interview.
But in 2013, the telecommunications, energy and airline sectors will also be assessed for potentially unfair contract terms – about which 400 complaints already have been made this year.
“For example, the telco contracts, are they unfair because they are so damn complex and so long that people can’t possibly get across what they have signed up for?”
Mr Sims said sham online reviews had emerged as an issue as more people went online to assess goods or services.
“Companies (are) either making up themselves, or getting other people to make up, positive reviews,” he said.
“Sometimes Blind Freddy can see what’s going on, but sometimes they are more subtle.
”Carbon tax complaints have slowed to four or five a day, and most are about how “my electricity price has gone up and I don’t like it”.
But the ACCC will maintain its special carbon tax taskforce, and is investigating skyrocketing refrigerant gas prices.
Online “group buying” – including websites that sell product vouchers that are later used by consumers – will also be investigated by the ACCC.
About 140 complaints a month are being raised about group buying.
That issue also has been raised in the past month with News Ltd, by disgruntled business owners who say they are owed money by voucher company Living Social.
Kevin Pearce, owner of Hobart travel cruise company Tasman Ventures, said he was owed almost $50,000.
He said he was forced to take 600 people on cruises for free last month because he faced “rioting” customers who wanted to use their vouchers.
“This is just killing us,” Mr Pearce told News Ltd in November. “I’ve got 500 people coming to our office in the next three weeks that have paid Living Social for our services and Living Social do not talk to us and have not forwarded us any money.”
And Melbourne beautician Jessica Spalding said she had not been paid $5600 for beauty class vouchers purchased.
Living Social said Ms Spalding’s payments were delayed because she provided the company incorrect bank details – a claim Ms Spalding denies.
Living Social said the delayed payment to Mr Pearce was the result of a human and computer error, and he has since been reimbursed.
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