PHARMACIST Ian Carr has been burnt. Not literally burnt, but he has certainly learnt to read the fine print before signing on the dotted line and warns others to beware.
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Ian's hard earned lesson came from an opportunity presented by The Community Network, which knocked on his Saxby's Pharmacy door offering a marketing platform through their plasma screening service.
Ranging from $1976 to $4420 per year for two years plus an additional $239 administration fee, the service markets itself as a 'digital signage solution converting our viewers into your customers'.
"With over 1100 venues and rising, we provide brand awareness and exposure for your business in your community. International vision with local insight," the company website says.
The Community Network had recently put in a marketing plasma screen in Taree's Access Healthcare centre, through which advertisements are rolled through to those sitting in reception. The ads are made at the discretion of the company, but require the approval of the client.
"I had been looking for a slightly different way to advertise and decided I would give it a go," Ian explained.
Pressured to 'sign now or miss the opportunity' by the marketing representative standing in front of him, Ian failed to read the tiny print consuming the page on the back of the contract, and he signed up.
Thirteen months in, he decided the advertising was not working for him, and contacted the company to cancel the service.
He was advised that he would still be required to pay for not one, but another two years. He was informed that his initial two year contract had rolled over after 12 months into another year, a whole year before the end of his first contract.
This took Ian to a minimum contractual obligation of three years, without any notification. Any cancellation needed to be sent by registered post, with over one year's notice. As per stated in the contract's fine print.
"The contractual terms were horrific," said Ian.
A detailed read revealed he had waived all right to legal advice, agreed to a contractual confidentiality clause, and given the company permission to change or edit the ad or put it somewhere else at their discretion. He would also have to pay up in the event of 'war, strikes, industrial action, import or export embargo, lockouts, accidents, fire, blockade, flood, natural catastrophes, or other obstacles over which the Company has no control' until the company cancelled the agreement, should those obstacles last over a month.
He would incur a $50 charge for each and every piece of correspondence related to a breach of the agreement.
The Manning River Times contacted The Community Network for comment. While the contact details were for a Queensland based business, the call was automatically forwarded on, supposedly to England.
The company has not responded to a request for information, and questions posed in an email address found at online complaint site Whirlpool have not been answered.
Technology Whirlpool forums are full of similar complaints from burnt advertisers.
The Queensland Office of Fair Trading (OFT) has confirmed it is currently investigating The Community Network, and reportedly said they had spoken with representatives of The Community Network. OFT is establishing whether or not the transactions breach the Australian Consumer Law, in which case enforcement will be possible.
It is understood NSW Fair Trading and the Australian Competition and Consumer Commission are supporting Queensland's investigation.
"I initially signed up for $3000, but by the time I finally managed to get out I had paid out around $6000. That included a $500 fee to the 'debt collector', " Ian said.
Ian said he paid up in the end because he just wanted to end it, and did not want to have to take it to court up in Brisbane (clause number 21 of 25 in the contract).
"It's unconscionable conduct, which I have heard doesn't come under consumer law because it's considered a business to business contract."
Ian said a similar, but not identical agreement, was recently left with him by Plasma-Tech Digital Solutions offering the same services. Their screen has been sitting with Medisense Health in Taree for several years, and a representative of Medisense said they had not heard of any complaints, but they do receive a commission from the ads, in cycles.
"These companies seem to have squirmed out of every legal loophole," Ian said.
"It seems obvious, but I want to remind people - don't sign anything without reading the fine print first."