Following Australian Competition and Consumer Commission action, the Federal Court in Perth has declared that Wilson Parking Australia 1992 Pty Ltd misled hundreds of its Western Australian customers over the number of contracted mobile security patrol inspections it had provided.
In orders handed down on Tuesday, Justice Barker found that between October 2007 and June 2008 Wilson had contravened the Trade Practices Act 1974 by representing to 322 customers, that it had made the contracted number of inspections when in fact, it missed a significant number.
The court also declared that Wilson engaged in misleading and deceptive conduct in breach of the Act by issuing monthly invoices to those 322 customers without disclosing that it had missed inspections. The court heard that during the relevant period, Wilson was aware that it had insufficient patrol officers to make all the inspections, but continued to invoice its customers for inspections missed.
Wilson has refunded over $230,000 to its affected customers as a result of the ACCC's action.
The court made orders preventing Wilson from engaging in similar conduct. It also ordered Wilson to contact all affected customers to advise them of the court's judgment, including its findings and the remedies granted. Wilson was ordered to pay the ACCC's costs.
"The security patrol industry has been the subject of ongoing concern," ACCC chairman Graeme Samuel said today. "This case sends a clear message that the ACCC will not hesitate to take action against businesses that promise to deliver goods or services to customers but then fail to keep their promises, or to deceive through silence.
"This matter highlights the need for businesses to be careful that when they contract to supply services that they have the necessary resources to carry out their obligations.
"I am pleased to note that Wilson cooperated fully in resolving this matter when the issue of missed calls was bought to the company's attention by the ACCC."