Customers who were charged for security services they did not authorise will receive compensation from Canberra-based security service, Custom Security Services Pty Ltd, following Australian Competition and Consumer Commission investigations.
"Custom Security Services will compensate customers whose security systems were 'upgraded' in early 2001, resulting in undisclosed cost increases for security systems and demands of payment for unsolicited services", ACCC Chairman, Mr Graeme Samuel said today.
The upgrades caused security systems to generate telephone calls to conduct 'opening and closing' reports and 'daily testing'. The service was generally undertaken without prior request or approval from customers, and CSS invoiced customers $99 for the upgrade.
"CSS also sent letters to customers which failed to disclose the full cost of the upgrade. The ACCC was concerned that the upgrade and letters involved misleading conduct and demands for payment for unsolicited services, allegedly in breach of sections 52, 53 and 64 of the Trade Practices Act 1974 (the Act).
"In June 2002, CSS gave a court-enforceable undertaking to the ACCC to resolve those concerns.
"Subsequent reports from some customers indicated that not all concerns had been completely resolved by the undertaking. Consequently, it has been withdrawn and a replacement undertaking made to ensure customers are aware of their right to seek a refund (or account credit) for the upgrade fee and any increased telephone charges incurred by the upgrade.
"In this second undertaking, CSS admits the conduct constituted representations and other conduct in contravention of sections 52, 53 (e) (f) and (g) and 64 of the Act, and has undertaken to:
- cease making demands for payment of security system upgrades
- write to customers offering refunds/ account credits (including compensation for telephone charges), and
- implement a trade practices law compliance program.