Kent Publishing - Advertising, False Billing |
Kent Publishing Pty Ltd operates a large call centre in New South Wales. It has targeted the Bed and Breakfast and other industries.
Kent has been described by the Office of Fair Trading in NSW as a "false biller".
Click here for: Update May 2008
It is alleged that Kent's staff telephone B&B owners around Australia and claim to be following up an order placed for an advertisement in one of a number of publications (see the link to the April 2006 Ministerial Warning, below). Kent allegedly faxes a proof of an advertisement prepared from information taken from the operator's own website and then claims payment for the advertisement.
A common ploy allegedly used is to claim that the partner or spouse of the person they are talking to agreed to the advertisement but that payment is due urgently to meet printing deadlines. In this way, Kent has induced many people to pay immediately over the phone using a credit card.
While Kent Publishing has provided an address and telephone number on its documentation it has been extremely difficult for people to contact them after payment has been made. On behalf of its members, BBFA has been consulting with Fair Trading about the legitimacy of Kent's activities for over three years.
As a result of recent action taken by Fair Trading, the NSW Supreme Court granted an interlocutory (temporary) injunction against Kent and its director, Dean James King, placing it under strict operating obligations. One of the major restrictions placed on Kent is that they are not permitted to process payments until they have a signed authority from the customer.
Members should be aware that it is illegal in Australia to demand money for a business directory listing without written authority. As of July 2007 in NSW it is now a criminal offence, in certain circumstances, for publishers to demand money for advertisements in any publication without a written authority and advertisers are not liable to pay unless a written authority has been provided. For more information see section 58 and 58A of the Fair Trading Act 1987 (NSW).
Kent Publishing is not the only business that engages in false billing activity and the following information is reprinted from the Guides for Establishing and Managing Accommodation Businesses in Victoria and South Australia.
"The B&B industry is consistently targeted by unscrupulous publications requesting payment for an advertisement that the operator has not ordered. The caller is persuasive and sounds plausible and many people are coerced into giving their credit card details over the phone. The best way to deal with this type of call is to -
- Only have one person in the business who is responsible for advertising.
- Ensure that you have seen a copy of the publication before advertising in it. Ask for a copy to be sent to you.
- Ask for a written report of the number of brochures to be printed and where they are to be distributed.
- Ask for evidence of your order and never give credit card details spontaneously over the phone. Be totally convinced that you have placed an advertisement before paying for it.
- Never respond to a 'special offer' without giving yourself time to consider taking it up. A reputable company will allow you to call back if you are interested and will give you contact details to do so.
- Keep a written record of every advertisement you place and have the record handy to the phone for quick reference."
Links for further information:
These links are for legislation that covers businesses such as Kent Publishing, that are registered in New South Wales. Businesses around Australia would be required to comply with consumer protection legislation in the state or territory in which they are registered.
The Australian Competition and Consumer Commission website maintains an extensive list of contacts that includes the Offices of Fair Trading and various courts, tribunals and dispute resolution groups for each state of Australia.
