Released 06/12/2019
The ACT Supreme Court has ordered Your Local Plumbing Group Pty Ltd pay a $100,000 penalty for making false and misleading representations, and engaging in misleading and deceptive conduct, in relation to the advertising of plumbing services in the ACT. The Court also ordered that Your Local Plumbing Group’s sole director and shareholder, Mr Shameer Khan, pay a $30,000 penalty for being knowingly concerned in the contraventions.
The Court found that between 2016 and 2018 the company published advertisements under multiple business names in the Yellow Pages, the Chronicle, and the Canberra Weekly, falsely advertising that services were supplied by businesses that were unrelated to Your Local Plumbing Group.
The Court also found that Your Local Plumbing Group falsely represented it had been in operation in Canberra for at least 25 years, or in some cases 30 years, when the businesses had only been in operation since 2015 at the earliest.
The Court found that Mr Khan was knowingly concerned in the conduct, since he had intended to obscure the fact the advertised services were provided by Your Local Plumbing Group and knew that the business had been registered in 2015.
ACT Fair Trading Commissioner David Snowden said this type of conduct from a local business was unacceptable and may have disadvantaged consumers, as well as plumbers who were doing the right thing.
“We took court action against Your Local Plumbing Group as we were concerned that these false representations could impact Canberra consumers and other businesses operating in the plumbing industry.”
“It’s important that businesses conduct themselves in a way that is honest and in line with the Territory’s laws,” Mr Snowden said.
“A ruling such as this demonstrates that this type of behaviour will not be tolerated in the ACT. The Court has sent a clear message with this significant penalty.”
Mr Snowden said it was an important reminder for all Canberra businesses that advertisements must be accurate and not misleading.
“Access Canberra continues to be vigilant in monitoring the advertisements of Canberra businesses for this sort of activity, and will continue to investigate complaints where necessary,” Mr Snowden said.
The court also ordered Your Local Plumbing Group to publish corrective advertisements in selected publications and on each of its individual websites, while establishing and maintaining an Australian Consumer Law compliance program for a period of three years. Your Local Plumbing Group and Mr Khan are restrained from making the same or similar representations in future advertisements for a period of five years, whether in connection to these or other plumbing businesses.
To find out more about the ACT’s fair trading and compliance work, or to submit a complaint, visit act.gov.au/accessCBR.
Background
The ACT Supreme Court found that Your Local Plumbing Group contravened the Australian Consumer Law when it engaged in misleading and deceptive conduct, falsely represented that services were supplied by unrelated businesses and had made false or misleading representations that services were of a particular standard, quality, value or grade. The Court also found that Your Local Plumbing Group had engaged in conduct that was liable to mislead the public as to the nature, characteristics or suitability for their purposes of the services offered.
Your Local Plumbing Group published advertisements under the following business names:
- Sam’s Local Plumbing
- Canberra Blocked Drain Services
- P1 Plumbing and Electrical Services
- P1 Plumbing and Electrical
- Your Local Plumber ACT
- Tuggeranong Plumbing
- Priority One Plumbing and Electrical Services
- North Canberra Plumbing
- Canberra Hot Water Systems and Repairs
- Statement ends -
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