Lift Shop and director 'misled consumers'

The Federal Court has declared by consent that Lift Shop Pty Ltd and its director, Leslie Katz, engaged in misleading conduct in breach of the Trade Practices Act 1974.

Lift Shop supplies residential and limited mobility lifts with its head office in Sydney and sales offices in Melbourne and Brisbane.

The court declared that Lift Shop twice substituted an ordered platform lift with a different model from another manufacturer, which had different features, and without the knowledge or consent of either customer.

The lifts were installed at the Saint Mary Star of the Sea College in Wollongong, NSW and at the Stonnington Council Town Hall, Melbourne in 2008.

The court declared that Mr Katz was knowingly concerned in the alleged conduct of Lift Shop.

In addition, the court ordered injunctions restraining Lift Shop and Mr Katz, except in very limited circumstances, from substituting lifts unless the written consent of the customer has been obtained. The court further ordered that Lift Shop advise the two affected customers of the court outcome and maintain a notice in relation to the matter on Lift Shop’s website at www.liftshop.com.au for 60 days and implement a trade practices law compliance program.  Mr Katz has been ordered to attend trade practices law training.

Lift Shop and Mr Katz were ordered to pay a contribution of $20,000 to the ACCC's costs and Lift Shop has agreed to make ex gratia payments totalling $7000 to the two affected customers.  

ACCC chairman Graeme Samuel said the conduct involved a decision to substitute a different product to that which a customer had ordered.

"Had this conduct occurred after the introduction of the new Australian Consumer Law, the ACCC would have sought from the court civil pecuniary penalties. Such penalties can be up to $1.1 million for companies and $220,000 for individuals.  The ACCC will not hesitate to seek civil pecuniary penalties in appropriate cases."