Custom Security Services Pty Ltd - s.87B undertaking

Company or individual details

  • Custom Security Services Pty Ltd
    052 469 164

Undertaking

Custom Security Services (CSS) applied upgrades to customers’ security systems in early 2001, which caused security systems to generate opening and closing reports and daily testing. The service was generally unsolicited. CSS invoiced customers for the upgrade, and posted letters to customers which failed to disclose the full cost of the upgrade. The ACCC was concerned that the conduct involved misleading claims and demands for payment for unsolicited services, allegedly in contravention of sections 52, 53 and 64 of the TPA. In June 2002, CSS made an undertaking pursuant to s. 87B of the TPA to resolve customer concerns. That Undertaking has been withdrawn and replaced with a new Undertaking. CSS now undertakes to ensure its customers are aware of their right to seek a refund or account credit for the upgrade fee and any increased telephone charges incurred as a result of the upgrade.

In this s. 87B Undertaking, CSS admits the conduct constituted representations and other conduct in contravention of sections 52, 53(e), (f) and (g) and 64 of the TPA, and has undertaken to:

  • cease making demands for payment of security system upgrades;
  • write to customers offering refunds/account credits including compensation for telephone charges; and
  • implement a trade practices compliance program

As part of this undertaking the ACCC has issued a questionnaire to customers in order to collect data on the extent of any potential continuing customer concerns

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