Reseller accused of ‘unconscionable conduct’

The Australian Competition & Consumer Commission has started Federal Court legal action against technology company FDRA Pty Ltd (‘The Foundation for the Digitization of Rural Australia’), formerly known as Angel Digital.

The Northern Territory reseller is accused of unethically selling tablet computers in September 2014 via “at least 600 agreements with indigenous consumers" signed in remote indigenous communities, at the Royal Darwin Hospital and at accommodation associated with the hospital.

“The consumers approached at the Royal Darwin Hospital were residents of the hospital or associated hostels, or family and friends visiting,” stated the ACCC.

FDRA sales staff falsely told customers "the tablets being supplied were iPads", according to the ACCC, and "that they contained thousands of games and that consumers were required to pay an additional fee for a warranty”.

The actual devices allegedly handed out were 7.85-inch Nextbook Android tablets, an ACCC spokesperson told CRN. The Nextbook USA site lists them on sale for US$59.99.

The watchdog alleged that many of the customers that signed for the tablets had “a poor understanding of English and of commercial transactions” and, in some cases, FDRA salespeople received immediate payment “by taking possession of the consumer’s bank card to make withdrawals”.

The ACCC stated that the company failed to meet requirements for unsolicited consumer agreements within Australian Consumer Law, and it believed the totality of FDRA’s behaviour amounted to “unconscionable conduct”.

CRN attempted to contact FDRA director Jackson Anni, also known as Temitope Ayodele Anifowose, but had not received a response at the time of writing. Anni’s LinkedIn profile suggests that he has now moved to Ho Chi Minh City to become a partner in a business called JTA Ventures.

“The ACCC has made both unsolicited selling and indigenous consumer protection priority areas,” said ACCC acting chair Dr Michael Schaper. “The ACCC alleges that this conduct in remote indigenous communities and the Royal Darwin Hospital involved some consumers that were particularly vulnerable.”

The case is due for a Federal Court directions hearing on 25 February in Darwin, with the commission seeking “pecuniary penalties, consumer redress orders, an order banning Mr Anni from managing a corporation declarations, injunctions and costs”.