Federal Court Bans Reseller from Entering Indigenous Communities

Tuesday 10 May 2016 @ 10.33 a.m. | Legal Research | Trade & Commerce

As reported in a recent ACCC Media Release, FDRA Pty Ltd (FDRA) (formerly known as The Foundation for the Digitization of Rural Australia, formerly known as Angel Digital) and its director Jackson Anni (also known as Temitope Ayodele Anifowose), have given undertakings to the Federal Court not to enter any Indigenous community in Australia or the Royal Darwin Hospital and its associated hostels to sell any goods or services for a period of 5 years, following action by the Australian Competition and Consumer Commission (ACCC).

Background

In December 2015, the ACCC brought proceedings in the Federal Court alleging that Anni and FDRA engaged in unconscionable conduct, misleading and deceptive conduct and contraventions of the unsolicited selling provisions of the Australian Consumer Law (ACL) [which contained in Sch 2 to the Competition and Consumer Act 2010 (Cth)] in the sale of electronic tablets and related extras in Indigenous communities and at the Royal Darwin Hospital and its associated hostels.

Earlier in 2016, the ACCC, together with Queensland Office of Fair Trading and the Indigenous Consumer Assistance Network unveiled roadside signage designed to minimise consumer harm from unlawful door-to-door trade in the far north Queensland Indigenous community of Wujal Wujal. Its aim was to remind door-to-door traders they have legal obligations to consumers and can’t approach houses displaying do-not-knock notices. It is also hoped that the signage helps to empower community residents to understand and assert their rights under the ACL.

Comment from the ACCC

ACCC Chairman Rod Sims said:

“Indigenous consumer protection is an enduring priority for the ACCC and we took this action to protect the rights of Indigenous consumers under that Australian Consumer Law. The undertakings to the Federal Court provide a high level of protection to Indigenous consumers going forward and serve as a warning to other traders that they must comply with the Australian Consumer Law wherever they are trading, including Indigenous communities. We encourage Indigenous consumers to contact the ACCC or the police if they are concerned about the conduct of traders operating in their communities.”

The allegations against FDRA

In its proceedings, the ACCC had alleged that from September 2014, Mr Anni and sales representatives acting on behalf of FDRA, entered into at least 600 agreements with Indigenous consumers in remote Indigenous communities, as well at the Royal Darwin Hospital and its associated hostels.

It was alleged that the FDRA representatives did not comply with requirements for unsolicited consumer agreements and made false and misleading representations that the tablets being supplied were iPads, that they contained thousands of games, and that consumers were required to pay an additional fee for a warranty.

The ACCC also alleged that FDRA had engaged in unconscionable conduct in circumstances where some consumers had a poor understanding of English and of commercial transactions and where the business used false or misleading representations and failed to comply with the unsolicited consumer agreements provisions.

Anni - labelled "a pest" and "a scourge" by Royal Darwin Hospital staff - was already prohibited from entering its grounds, although NTNews reported in February 2016 that he continued to defy that ban to "do business".

Federal Court Undertakings

The undertakings, which were made to the Federal Court and are enforceable, also require Mr Anni and FDRA to:

  • cease accepting payments and automatic deductions in relation to goods or services supplied within 7 days of executing the undertaking;
  • only sell electronic tablets to any Australian consumer that first approach them, provide a 10 day cooling off period (including not taking payment or supplying goods);
  • have written agreements with all the goods or services it sells to every consumer, irrespective of whether they are unsolicited consumer agreements; and
  • provide $20,000 for consumer redress, to be distributed by the ACCC.

When the accusations first surfaced in January 2016, social media suggested Anni had relocated to Ho Chi Minh City to become a partner in a business called JTA Ventures. The latest information shows that he is running as an independent candidate in the Northern Territory general election, set for 27 August 2016.

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Sources:

Jackson Anni and FDRA sales agents not to enter Indigenous communities to sell goods or services – ACCC Release MR 75/16

Reseller banned from entering indigenous communities – crn.com.au
 

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