Maurice Blackburn Announces Class Action Against Radio Rentals
Thursday 30 March 2017 @ 11.44 a.m. | Trade & Commerce
Law firm Maurice Blackburn has announced they will be commencing a class action in the Federal Court of Australia against Thorn Australia Pty Ltd, who trade under the name “Radio Rentals”. The class action will allege that Radio Rentals has engaged in misleading and deceptive conduct and/or unconscionable conduct, and that contracts contain unfair contract terms. In particular, the class action highlights Radio Rentals’ “Rent Try $1 Buy” leases.
According to their website, Morris Blackburn is undertaking the class action on behalf of people who entered into the “Rent Try $1 Buy” leases with Radio Rentals between 28 March 2011 and 29 March 2017 in all states except South Australia. They estimate that over 200,000 people may have paid excessive amounts on their leases.
Maurice Blackburn Lawyers principal Ben Slade outlined the details of the scheme to the Sydney Morning Herald, who report:
“The Radio Rentals website tells potential customers that at the end of a 24-, 36- or 48-month rental plan for an appliance or piece of furniture: "you can make it yours for just $1".
Mr Slade said that was not correct, as customers do not automatically get to buy their rented items outright for $1.
Instead, the fine print stated that the impetus is on customers to negotiate to buy rented appliances or furniture for a price agreed by Radio Rentals.
If customers fail to secure a purchase, their contracts automatically roll over into another 24-, 36- or 48-month term.”
The lead plaintiff is Ms Casey Simpson, from Wagga Wagga. In a statement released by Morris Blackburn, she said Radio Rentals had deducted more than $3300 from her Centrelink account for a used mattress and bed valued at around $430:
“I have four kids and am on a low income – I thought Rent, Try, $1 Buy would be a sensible alternative to get some basic goods in a way we could afford. I never knew I’d have to pay as much as they kept charging me, or that I wouldn’t have a right to buy the goods for $1,” Ms Simpson said.
I feel unfairly treated and taken advantage of. If it’s happened to me it’s likely to have happened to many others. That is why I have decided to stand up and take this action to hold Radio Rentals to account.”
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