The ACCC has brought proceedings against Beacon Products, which sells printer cartridges in Australia, alleging the company continues to engage in unfair and misleading conduct despite being in liquidation.
The company, which allegedly sold replacement cartridges through fake marketing calls, was led by Beacon director Warren Scree, who the ACCC accuses of deliberately engaging in the company’s alleged unfair conduct.
The ACCC alleges the companies engaged in unfair conduct, including deceiving customers and using undue influence and pressure, to make unauthorised sales of printer cartridges and cleaning products to businesses across Australia, in breach of the Australian Consumer Law.
Beacon and Zandox allegedly misled corporate customers into ordering printer cartridges or cleaning supplies by falsely claiming in unsolicited phone calls that they were confirming orders already placed by the companies, without actually placing any orders.
The companies are also alleged to have misled some customers into believing that the initial order constituted an existing supply agreement or that the customer had no right to cancel an existing supply agreement, when this was not the case. The companies are also suspected of misleading some customers into believing that they were not entitled to returns or refunds for unwanted items.
The alleged breaches of Australian Consumer Law in this case relate to a pattern or pattern of conduct that occurred over a number of years, beginning in November 2016.
”Beacon and Zandox allegedly targeted a wide range of small and medium-sized businesses, including care homes, nursing homes, nurseries and agricultural businesses, by misleading them into taking orders for unwanted or unnecessary products and making it difficult to return those unwanted goods,” ACCC Deputy Chair Catriona Lowe said.
”We are taking this action because we are concerned about the financial and emotional stress this behavior can cause business owners and employees.”
In one case of alleged breach of the Australian Consumer Law, a small business in New South Wales received three shipments of ink cartridges from Beacon, which it accepted. A Beacon representative then contacted the company to confirm a subsequent shipment. The company asked Beacon to make this the last shipment. Beacon continued to contact the company to confirm subsequent orders. It is alleged that after the first three shipments, no agreement was reached between the parties regarding orders and payments.
The company also asked Beacon to cancel all future orders and made several requests to return cartridges it did not order or want for a refund. Beacon said the orders had been confirmed and approved by its staff and that it would not return unwanted cartridges. The ACCC said the company had the right to return the unordered goods and receive a refund.
In 2004, the ACCC brought proceedings against Mr Scree and his previous company, Globex Systems Pty Ltd, alleging they claimed to be entitled to payment for unsolicited goods and falsely claimed that the companies had agreed to purchase products from Globex when they had not.
The ACCC is seeking declarations and penalties against Beacon and Zandox, and financial penalties, declarations, disqualification orders, costs and injunctions against Mr Skree.
Post time: May-13-2025