US$50,000 Penalty Fined for Deceiving Businesses

Brendon Foye from crn.com.au reported

ACCC chases director to pay US$50,000 fine for printer ink scam

Australia’s consumer watchdog has commenced legal proceedings to enforce a US$50,000 penalty against a printer ink reseller involved in deceptive and misleading claims in 2012.

Tuan Nguyen was charged with making false or misleading representations in 2013 on behalf of his telemarketing business Artorios Ink, which sold printer cartridges to small businesses.

A court found that Artorios Ink mislead businesses into believing they had purchased printer cartridges through deceptive conduct, such as targeting junior staff and leading them to believe they had already purchased products when no such agreement had taken place.

Nguyen declared bankruptcy after receiving a US$50,000 penalty for the charges. He has since been discharged from bankruptcy, but has not paid the previous penalty.

The ACCC is seeking a garnishee order, which would require his current employer to withhold some of his wages in order to pay the penalty.

ACCC deputy chair Michael Schaper said the organisation will take action to enforce penalties if they are not adhered to by businesses and individuals.

“Individuals who have contravened the Australian Consumer Law cannot escape paying court-ordered penalties by filing for bankruptcy. As in this case, the ACCC may take action after they are discharged from bankruptcy,” he said.

In June, the Federal Court sentenced the owner of electronics retailer Electronics Bazaar to three months imprisonment for repeatedly misleading customers about their refund and warranty rights after a lengthy battle with the ACCC.