ADT Security will refund approximately $141,000 to 2,300 mainly residential customers after the Australian Competition and Consumer Commission raised concerns over the charging of Goods and Services Tax on long-term alarm monitoring contracts.
The ACCC contended that certain ADT 'Safewatch' monitoring contacts did not allow ADT to pass on any GST liability to its customers. ADT has agreed with this contention and will write to all affected consumers refunding any GST paid and apologising for the mistake.
"This overcharging indicates that businesses need to exercise caution when determining whether GST applies to long term contracts", Acting ACCC Chairman, Mr Rod Shogren, said today.
"The ACCC is currently investigating a number of similar long term contract issues across a range of industries".
The ACCC's role of investigating New Tax System related price concerns continues until 30 June 2002.