The ACCC is likely to be emboldened by a new court decision against Lux Distributors.
In a significant decision with implications for both businesses and consumers, the court has found in favour of the Australian Competition and Consumer Commission (ACCC) in its case against Lux Distributors Pty Ltd.
The ACCC alleged that Lux, a seller of vacuum cleaners, had engaged in unconscionable conduct in relation to three elderly women by using “free maintenance checks” of the women’s existing vacuum cleaners as a deceptive ruse to gain access to their homes. Salespeople then exercised a range of pressure-selling techniques to get the women to purchase Lux products.
In a unanimous decision, the court agreed with the ACCC, finding the actions breached consumer laws.
Businesses should revisit their contracting arrangements, marketing strategies and ongoing business practices to ensure any previous risk assessments are in line with the outcomes of this case, which explicitly consider social norms and questions of fairness. Consumers should also be aware of their rights when subject to visits by salespeople within their homes.
Contact us if you would like to help ensure your business is in compliance with the law and not exposed to prosecution. Just pop us a note to [email protected] or call us on 02 8006 0830 for a confidential discussion.
