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Category: Courts and Trials / Company News / Consumer Protection

Chrisco hamper company fined $200k for direct debit law breach

Tuesday, 1 Mar 2016 13:59:14 | Simon Cullen

Chrisco's Christmas hamper lay-bys had contracts that rolled over for another year unless customers opted out. (Supplied: Chrisco)

Christmas hamper company Chrisco has been fined $200,000 in the Federal Court in Brisbane for breaching consumer laws.

The Federal Court last year found Chrisco's lay-by agreements broke the law because the company was able to keep taking money from customers' accounts through direct debits, even after the lay-by had been fully paid.

Customers were told they would have to expressly opt-out to avoid having further payments being deducted by the company.

The Australian Competition and Consumer Commission (ACCC) had asked the court to impose a $600,000 fine, saying it was reasonable considering the scale of the offence.

Chrisco's lawyers argued that a $600,000 fine was well in excess of any profit made from the offending behaviour.

AustraliaPlus


 

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