Reseller banned from entering indigenous communities

A reseller accused of "unconscionable conduct" against indigenous customers has agreed with the Federal Court to stop its sales practices and pay $20,000 in compensation.

In January, the Australian Competition and Consumer Commission commenced legal action against FDRA Pty Ltd (‘The Foundation for the Digitization of Rural Australia’, formerly known as Angel Digital) for "unconscionable conduct" in selling tablet devices directly to at least 600 customers in Royal Darwin Hospital and nearby accommodation.

FDRA sales staff told the mainly indigenous customers that the tablets were Apple iPads, alleged the ACCC, and buyers were required to pay extra for warranty. The actual devices sold were allegedly 7.85-inch Nextbook tablets, an Android product that the vendor website listed as US$59.99 retail.

The ACCC also claimed many of the customers had “a poor understanding of English and of commercial transactions” and FDRA staff, in some cases, received immediate payment “by taking possession of the consumer’s bank card to make withdrawals”.

On Friday, the ACCC announced that FDRA and director Jackson Anni, also known as Temitope Ayodele Anifowose, had given an undertaking to the Federal Court that it would not "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 five years".

ACCC chairman Rod Sims said legal action was started to protect indigenous consumers.

“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."

The ACCC stated it will distribute $20,000 handed over from FDRA for consumer redress. The reseller also agreed to stop accepting payments and automatic deductions; to only sell tablets to customers that initiate contact; provide a 10-day cooling off period without payment; and record written agreements with all customer transactions, regardless of who initiated the sale.

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

“I’m going to go there today again, I have a lot of clients to see there,” Anni told the newspaper at the time. “If you have a customer who wants to buy your product... and they happen to be in hospital, you’d go there too, wouldn’t you?”

CRN attempted to contact Anni by multiple means, but he had not responded at the time of writing.

When the accusations first surfaced in January, 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 this year's Northern Territory general election, set for 27 August.