ACCC secures refunds from liquidator of Blue Book Directories Companies (in liquidation)

The Australian Competition and Consumer Commission has secured refunds for consumers from the liquidator of Blue Book Directories Ltd (in liquidation) and Blue Book Directory Services Pty Ltd (in liquidation).

Blue Book Directories Ltd (In liquidation) and Blue Book Directory Services Ltd (in liquidation) were involved in the publication, printing and distribution of telephone directories in various regional areas of New South Wales including the Central Coast, Lower Hunter, Illawarra and Sydney.

Mr Anthony Sims of Sims Lockwood & Partners was appointed administrator of the companies on 11 September 1997. By resolution of the companies' creditors Mr Sims was appointed as liquidator of the companies on 9 October 1997.

Some customers of the Blue Book companies continued to make payments to the companies' bank accounts and also forwarded cheques to the companies' offices which were subsequently received by Mr Sims at his firm, Sims Lockwood & Partners. During the course of Mr Sims' administration of the companies, he sought legal advice as to the legal status of Blue Book Directories and Services customers and the application of customer receipts. Acting upon that legal advice these payments were then applied by the liquidator and the administrator.

The ACCC considered that the application of these payments by the liquidator may have resulted in a contravention of section 58 of the Act in that after Directories and Services went into administration they accepted payment without intending at the time of acceptance to publish directories.

The ACCC contacted Mr Sims with its concerns. As a result Mr Sims stopped accepting payments, refunded monies to consumers, and made a contribution towards the ACCC legal fees. Mr Sims cooperated with the ACCC during its investigation of this matter and, a resolution and the relief obtained may not have been possible if the ACCC had began court action.

"Professionals must be aware of their responsibilities under the Trade Practices Act 1974," ACCC Chairman, Professor Allan Fels, today. "Otherwise they, too, run the risk of falling foul of the law".