The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Darwin against Mr Ramon Keshow for alleged unconscionable conduct and misleading and deceptive conduct in the promotion and supply of educational materials in indigenous communities in the Northern Territory.
The ACCC has alleged that since September 1998:
- Mr Keshow visited a number of indigenous communities in the NT trading under the business names of National Math Academy, Drysdale Correspondence Schools and Easy Buying Services
- when visiting these communities, Mr Keshow solicited customers for the supply by him of educational learning materials
- Mr Keshow secured payment for these goods by having customers sign a periodic payment form, which authorised deductions to be made indefinitely from the customers' bank accounts to the nominated account held in the name of one of Mr Keshow's businesses.
The ACCC alleges that Mr Keshow has engaged in unconscionable conduct in breach of the Trade Practices Act 1974 by, among other things:
- exploiting the customers lack of commercial experience when requesting that customers sign periodic payment forms with no termination date
- failing to explain to consumers the significance and effect of the periodic payment form the customers were asked to sign, including failing to advise customers about the duration of time payments were to be made and how and when the customers could stop payments
- failing to supply customers with any goods or only supplying very few or inadequate goods, such that the amounts paid were in significant excess of the value of the goods received.
The ACCC also alleges that Mr Keshow had engaged in conduct that was misleading or deceptive, or likely to mislead or deceive, contrary to section 52 of the Act by, among other things, failing to disclose to prospective customers the total cost of the educational materials and representing to customers without reasonable grounds that they would receive goods on a regular basis.
The ACCC is seeking orders including:
- declarations that the conduct engaged in by Mr Keshow contravened the Act
- injunctions having the effect of restraining Mr Keshow from engaging in the conduct again
- attendance at a trade practices seminar
- costs.
If the ACCC is successful in its action, it proposes to make an application for compensation on behalf of the indigenous people alleged in the Statement of Claim to have suffered loss or damage because of the conduct.
The matter has been listed for a directions hearing in the Federal Court, Darwin on at 9.15 a.m. on 19 October 2004 before Justice Mansfield.