ACCC moves to stop computer retailing scheme

The Australian Competition and Consumer Commission has obtained an interim injunction in the Federal Court, Adelaide against Perth–based computer retailer Info4pc.com Pty Ltd, for allegedly advertising but not delivering very cheap computers, mainly on the Internet.

The ex parte interim injunction restrains the company from advertising and accepting orders for computers and/or upgrades. There will be a further hearing on Wednesday 31 January 2001 in the Federal Court, Perth.

Info4pc.com Pty Ltd initially priced its basic computer package at $299 but later raised this to $499. To offset the low price, buyers agree to provide personal lifestyle information by completing a questionnaire each month for two years. This information is then collated and sold as market research. Investigations reveal that these computers cost Info4pc.com $1,250 and that the income from sales of market information will likely be inadequate to meet this cost.

The ACCC alleges that more than 3,000 consumers have already paid for their computers, with most yet to receive the goods.

The injunction obtained by the ACCC affords national protection to consumers and follows proceedings last month by the Western Australian Ministry of Fair Trading, which assisted in this action. Authorities in the United Kingdom and Canada have investigated similar schemes with direct links to Info4pc.com in Australia. The UK schemes closed their doors in October and November 2000, and the Canadian scheme in November 2000, leaving thousands of consumers out of pocket. All the companies had a common director, Mr Johnson E Williamson.