The Australian Competition and Consumer Commission has joined with the Australian Securities and Investments Commission, the Australian Tax Office and the Department of Consumer and Employment Protection in Western Australia to warn consumers to beware of illegal money-making scams.
The agencies will target illegal scams promoted by unscrupulous individuals and traders whether they are promoted across the Internet or involve the more traditional methods such as mail-based schemes.
"With the increase in e-commerce, email and Internet access, Australian consumers are potentially exposed to more illegal schemes than ever before", Acting ACCC Chairman, Sitesh Bhojani, said today.
The warning relates to a wide range of illegal behaviour including pyramid selling, competitions and lotteries, investment seminars, wealth promotions, get rich quick schemes and envelope stuffing, and other work from home schemes.
The promoters of illegal schemes are often based overseas and use a deceptive web of mail and distribution houses, or are fly by night operators with temporary locations before absconding with the illegal proceeds.
"These evasive tactics will not deter the ACCC from pursuing illegal schemes identified, including taking enforcement action against overseas operators or working closely with overseas enforcement agencies, particularly those with membership in the International Marketing Supervision Network", Mr Bhojani said.
The International Marketing Supervision Network (IMSN) is an organisation made up of more than 30 consumer protection agencies worldwide. The ACCC (Mr Bhojani) is the President of the IMSN in 2002/2003. The IMSN fosters cooperative efforts by member authorities to tackle consumer problems connected with cross-border transactions in both goods and services. Exchange of information between authorities also plays a key role in effective investigations and court action where necessary.
In the past the ACCC has successfully taken action against a number of traders including:
- World Netsafe Pty Ltd and Mr Terence Butler for engaging in misleading and deceptive conduct, referral and pyramid scheme in relation to an ATTM card scheme.
- Kevin Ryan for participating in a scheme called Skybiz 2000 Home Based Business, which breached the pyramid selling provisions of the Act.
- FreeNet2000 for promoting an aspect of its service that the ACCC believed breached the pyramid and referral selling provisions of the Act.
- Purple Harmony Plates Pty Ltd for making unsubstantiated health and other claims for its products on the Internet.
Consumers wanting to report a suspect scam or learn more about their rights can contact the ACCC on 1300 302 502.