The Federal Court today handed down its decision in the ACCC's proceedings against Radio Rentals, a retailer of electrical goods in South Australia.
The ACCC instituted the proceedings in December 2003 against Radio Rentals Limited* and Walker Stores (which operates as "in Rent" through Radio Rentals stores) alleging that they engaged in unconscionable conduct in their dealings with an intellectually disabled man.
The ACCC alleged that the companies engaged in unconscionable conduct in their dealings with the man which resulted in:
- the man entering into 15 rental agreements, two loan agreements and 17 service agreements with Radio Rentals and
- three rental agreements with Walker Stores
between November 1996 and October 2002.
The agreements were in respect of various electrical goods including fridges, televisions, washing machines, microwave ovens, video recorders, a clothes dryer, heater, vacuum cleaner, DVD player and a digital camera.
The ACCC alleged the man paid Radio Rentals and Walker Stores more than $20,000 pursuant to the agreements.
In the decision handed down today Justice Finn found that Radio Rentals and Walker Stores had not acted unconscionably in contravention of the Trade Practices Act 1974 in their dealings with the intellectually disabled man.
Justice Finn commented that one of the matters highlighted by the proceedings was the peculiar vulnerability of persons, like the man in this case, who are unable to conserve their own interests but who do not put people with whom they deal on notice of their incapacities. He considered that can rebound to their disadvantage, as the circumstances of this case demonstrated.
The man now lives in another State with the support and care of members of his family.
* NB: Radio Rentals Limited operates Radio Rentals Stores in South Australia only.