Hamper company Chrisco, which is well known for its Christmas hampers, is heading to the federal court over its contract terms.
The Australian Competition and Consumer Commission (ACCC) claims Chrisco, which promotes is hamper products on TV, the internet, and in printed catalogues, contravened Australian Consumer Law.
The ACCC alleges that Chrisco included an unfair contract term in its 2014 lay-by agreements. The term relates to Chrisco’s HeadStart Plan, and allows Chrisco to continue to take payments by direct debit after the consumer has fully paid for their lay-by agreement.
Under this term, consumers were required to opt out in order to avoid having further payments deducted after their lay-by has been paid for, according to the ACCC.
The ACCC also alleges that from January 2011 to at least December 2013, Chrisco made false or misleading representations to consumers that they could not cancel their lay-by agreement after making their final payment.
It is also alleged that from 2011 until December 2014 Chrisco charged consumers a lay-by termination fee in excess of Chrisco’s reasonable costs in relation to those lay-by agreements.
"Purchasing goods by way of a lay-by agreement is convenient for many Australian consumers, particularly for Christmas. The ACCC is concerned to ensure that traders using the lay-by sales method comply with their obligations under the ACL, including those in relation to termination rights and lay-by termination charges,” ACCC Chairman Rod Sims said.
