serving consumers and traders in NSW...Page 2 Fair Trading: serving consumers and traders in NSW Minister’s Foreword Services Public customers: • 4-5 million requests for services

Fair Trading:serving consumers and traders in NSW

A YEAR IN REVIEW

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1SSN 1448 - 7209New South WalesOffice of Fair TradingParramatta NSW AustraliaOctober 2003.

Executive Summary 3

Highlights 5

Program Allocations 5

Planning Framework 6

Department of CommerceMission Statement and Values 7

Our Structure 8

Legislation 9

Objective One 10Appropriate safeguards for consumerswith minimal restrictions on business and traders

Objective Two 20Maximum compliance with fairtrading statutory requirements

Objective Three 42Accountable use, in all the Office’sactivities, of public resources

Fair Trading Publications 50

Advisory Councils 52

Portfolio Authorities 54

Office Locations 55

Index 56

Contents

Fair Trading CentresWe operate Fair Trading Centres at the 23 locations shownopposite. These Centres provide information andassistance on consumer issues, motor vehicles,home building and renovation, credit,property and tenancy issues, plusco-operatives and business nameregistration.

Call 13 32 20

to reach your nearest

Fair Trading CentreMonday to Friday between 8:30 am and 5:00 pm.

Other locationsSelected Fair Trading services are also available via Government Access Centres(GACs) and other agency arrangements throughout regional New South Wales.

Call 13 32 20 for information on the services available in these towns:Ashford, Balranald, Barham, Boggabilla, Bombala, Boorowa, Bourke, Brewarrina, Cobar, Condobolin, Cooma,Coonabarabran, Coonamble, Crookwell, Culcairn, Dorrigo, Dunedoo, Eden, Finley, Forbes, Forster, Gilgandra, Glen Innes,Grenfell, Gundagai, Hay, Hillston, Holbrook, Inverell, Jindabyne, Kyogle, Lake Cargeligo, Lockhart, Maclean, Menindee,Merriwa, Moama, Moree, Moruya, Moulamein, Mt Druitt (urban GAC), Mungindi, Murrurundi, Nambucca Heads,Narooma, Narrabri, Narrandera, Nyngan, Oberon, Peak Hill, Quirindi, Rylstone, Scone, Temora, Tenterfield, Tumbarumba,

Ulladulla, Walcha, Walgett, Warialda, Warren, Wentworth, West Wyalong, Wilcannia, Woodenbong.

Fair Trading: serving consumers and traders in NSW Page 1

The Office of

Fair Trading

During the year, the Department of

Commerce was established with the Office

of Fair Trading created within it. The new

Department provides an annual report to the

Minister for Commerce for tabling in

Parliament. However, due to the Office’s

high level of community contact and the

continuing formal role of the Commissioner

for Fair Trading, this additional report has

been produced to highlight activity in the

New South Wales fair trading arena.

What we doWe safeguard consumer rights and advisebusiness and traders on fair and ethical practice.Our customers include people renting homesand those building or renovating. There arestrata scheme owners, people buying cars orlooking for consumer information. A largenumber are builders and people working in atrade or running a business. But our services gobeyond those delivered to individuals. Thelegislative framework we administer sets thescene and the rules for fairness in the countlessdaily transactions between consumers andtraders. Often behind the scenes, unfairpractices are investigated and prevented. Asystem of licensing and the investigation ofresidential building complaints help ensureunqualified or inappropriate people do notwork in the NSW home building industry.This provides integrity to the industry andprotection for consumers from faulty orincomplete work.

Consumer helpProviding information is core business for FairTrading. Consumers of everyday goods andservices can use our Web site or contact ourFair Trading Centres to obtain information ontheir rights and responsibilities and assistancewith resolving disputes. People renting homes,buying or selling property or living in stratascheme property can turn to us for informationand assistance.

Business & trader servicesTraders and business people can registerbusiness names and obtain the licences andcertificates they need to operate in New SouthWales. Builders and contractors, people in theaccommodation and property servicesindustries and those engaged in selling goodsor providing services can receive informationon their rights and obligations under fairtrading laws.

Co-operatives & AssociationsWe actively encourage the formation anddevelopment of co-operatives and we helpcommunity groups establish themselves asassociations.


Minister’s Foreword

Services

Public customers: • 4-5 million requests for services each year

General community: • 15,600 compliance-related activities

• 46 pieces of legislation - proactive review

Economic impact: • Regulated industries turning over at least

$47 billion per year (excluding finance and credit

industries)

• 479,725 registered business names

• 213,460 licensees

Logistics

Phone: • 1.5 million incoming calls per year from the

general public (requests for fair trading

information)

Counter: • 23 Fair Trading Centres

• 280,000 counter enquiries per year

Web site: • 800,000 visitor sessions per year (information

and transactions)

Other outputs: • 1.6 million REVS checks and encumbrance registrations

• 570,000 rental bond transactions

Staff: • 1129 including the Consumer Tenancy &

Trader Tribunal (independent statutory body

serviced by OFT)

Budget: • $158 million approx

At a glanceFair Trading


SummaryExecutive

The major development during the year was

the creation of a new Department ofCommerce - incorporating the Office of Fair

Trading and establishing the office ofCommissioner for Fair Trading to have

statutory responsibility for all fair tradinglegislation.

Since then there have been two majorpriorities. The first has been to workcollaboratively with the Department’s otheroffices, under the guidance of the Director-General, to ensure the new agency’s smoothand efficient formation. The second has been toensure that service quality to consumers andtraders during this process is unaffected andthat ongoing improvement processes continue.

Providing fair trading services from within thecontext of a more broadly focused organisationis a wonderful opportunity to extendefficiencies. At the same time our name, theOffice of Fair Trading, provides importantcontinuity to the people of New South Wales.For consumer and trader customers ourservices will remain familiar and be providedin an efficient and friendly manner. For thebroader community, on-going fair tradingpolicy and legislative development as well asassociated compliance action will ensurefairness and integrity in the NSW marketplace.

Customer services

During 2002-2003, the Office of Fair Tradingonce again responded to well over 4 millionservice requests from the public.Administering more than 40 different pieces oflegislation means that services span a verybroad range of issues – from complex creditand home building issues to every-dayconsumer advice. That we can service this levelof demand and achieve customer satisfactionlevels of over 90% is a testament to the skillsand dedication of our front line staff. Somenumbers are particularly interesting. Wereceived 1.5 million incoming calls from thegeneral public for fair trading information,while similar counter enquiries numbered280,000. These levels signify continuing strong

demand for phone and counter services.However, at the same time our Web site visitorsessions reached more than 800,000. This isnew demand. It is supplementing rather thanreplacing traditional service methods.

In the coming year, we will introduce a newself-help facility to the Web site. Available 24hours a day and more sophisticated than generalweb based information, it will allow manycustomers to satisfy their information needs bybeing able to interrogate a data base ofinformation. The same system will also helpour customer service officers respond to phoneand counter enquiries.

For phone customers, we are progressing witha major restructuring of our call centres. Oncecompleted in 2004 – 2005, customers will onlyneed to call a single number to access all ourservices.

The Office of Fair Trading is the pilot agencyfor the Government’s on-line licensing project.From April 2003, our customers could use thesystem to lodge business name and businesslicence renewals and changes of particulars. Asmore services are added over the coming year,we anticipate even greater traffic on the Website.

Enforcement

The compliance function of the Office of FairTrading, which involves about 130 inspectors,investigators and legal staff, is designed toensure traders comply with their obligationsunder NSW consumer protection legislation,including the Fair Trading Act 1987 andoccupational licensing legislation - where lastyear there were 213,460 licensees.

Where a trader or licensee is willing and able tocomply with their obligations and remedy theeffects of any misconduct or non-compliance,Fair Trading will generally permit them tocontinue to carry on business after enforcementaction has been taken. This is only fair, as theevents are often the result of ignorance, erroror carelessness. On the other hand, cases

...Fair Trading once

again responded to

well over 4 million

service requests from

the public.


involving more serious or deliberate behaviourdemand a tougher response where licencedisqualification or court action is the onlysuitable way to achieve a fair result for thecommunity or the victims involved.

This publication includes samples of a range ofprosecutions and disciplinary actions coveringthe full scope of Fair Trading’s responsibilities.Publicising these compliance actions helps toinform consumers of practices that are contraryto their interests and to warn traders of theserious consequences for those who floutNSW fair trading laws. During the year wewere involved in 15,600 compliance-relatedactivities. These included inspections,investigations, prosecutions, disciplinaryactions and civil litigation. Of the 668prosecutions undertaken, 86% were successful- where a penalty was either imposed or aconviction proven. New intelligence softwareas used by national and international lawenforcement agencies has now been acquired.We anticipate significant gains in detection andinvestigation abilities.

Improving the legislative framework

The Government’s fair trading legislativeprogram delivered several notable new benefitsto the people of New South Wales in 2002-2003.

The Home Building Service was establishedand it is now coordinating reforms designed toraise the bar for home building in NSW. Betterlicensing, construction standards, disputemanagement and improved building skills areset to improve the home building or renovatingexperience for consumers.

People borrowing money can now refer tomandatory comparison rates to identify theirbest credit choices. People buying cars oncredit now have a one-day cooling off period toreview their decisions. People buying residentialproperty at auction will soon benefit frommore transparent sales practices that includethe outlawing of ‘dummy bidders’ who hadbeen used to inflate auction prices. Peopleusing mortgage and finance brokers will beshown exactly what they are paying for and willsee who might be receiving commissions for theirbusiness. People looking for jobs have improvedprotection against illegal job placement fees.

The broader community will benefit indirectlythrough the introduction of significant changesto enforcement provisions in the Fair Trading

Act. Courts now have the power to send repeatoffenders to gaol for up to three years. It is nowan offence not to be able to prove claims madein advertising – meaning consumers will not besubjected to grossly misleading promotionaland advertising materials.

Our people

Fair Trading measurably reaches a significantproportion of the approximately 6.7 millionpeople living in NSW. Our focus is not justmetropolitan mainstream. Our programsinclude specific services for many communitysectors: regional people, those from non-English speaking backgrounds, young people aswell as the Aboriginal community. Throughour people, we are well placed to understandtheir respective needs.

The people working in our network ofregional Fair Trading Centres and at theRegistry of Cooperatives and Associations atBathurst provide a solid base for understandingwhat country people want. The diverse makeup of our staff, including speakers of 28different languages helps ensure our servicesare fairly targeted to the broadest possiblecommunity. A permanent and successful teamof Aboriginal customer service officersprovides the knowledge and access needed toreach this frequently overlooked section of thecommunity.

Fair Trading is a service organisation and wouldcease to exist without its people. Our customerservice officers continue to respond to highlevels of demand in a way that customersclearly appreciate. Other staff may have lessdirect connection with customers, but theirprofessionalism, dedication and initiative arethe factors that once again allowed us to achieveour objectives.

The Office of Fair Trading acknowledges theformer Minister for Fair Trading, the Hon. JohnAquilina MP, a tireless advocate for Fair Tradingand Minister for much of the financial year.Management and staff are pleased to be able toassist Ms Kate McKenzie, Director-General ofthe Department of Commerce, in developingthe new organisation and look forward also toassisting the Minister for Fair Trading, theHon. Reba Meagher MP, as well as theMinister for Commerce, the Hon. John DellaBosca MLC.

We measurably

reach a significant

proportion of the

approximately 6.7

million people living

in NSW.


HighlightsObjective One

• Government approves the establishment ofthe Home Building Service and a range oflegislative changes to improve licensing,construction standards, dispute managementbuilding contracts and industry training andskills enhancement

• Introduction of mandatory comparison ratesfor fixed term credit products allowconsumers to identify their best creditchoices

•Fair Trading Act amendments provide a range ofnew consumer protections including tightercontrols on direct commerce, productadvertising and scope for Courts to sendrepeat offenders to goal for up three years

• Introduction of written contracts and up-front disclosure of commissions to improvethe protection of consumers who use financebrokers

The Future

• Legislation reforms in the following areas:- business names- strata schemes- fair trading- co-operatives- associations- residential parks- funeral funds- electricity safety

Program Allocations - expenses Program Allocations - average staff*

Objective Two

• NetMap intelligence software introduced toprovide flexible intelligence and analysiscapacity to support inspections andinvestigations

• Seizure of almost 200,000 Canadian scamletters permitted by the Supreme Court - anAustralian first

• Phase One of NSW Government’s on-linelicensing project allows electroniclodgement of business name and businesslicense renewals and changes of particulars

• New Home Building Web site launched• Scam Smart education program introduced to

encourage seniors to “Beat the Cheats”

Objective Three

• Customer satisfaction continued at over 90%• Electronic self-service introduced to allow

managers and staff to access human resourcerelated information

• Intranet introduced• OFT Aboriginal Employment Strategy

increased the percentage of Aboriginal staff toover 3% - against a Government target of 2%.

• Good Business Matters kit introduced to helpbusinesses trade fairly

• Ethnic Web site launched with topics inArabic, Chinese, Greek, Italian, Spanish,Vietnamese and Macedonian

The Future

• Builders and trade contractors to undertakecontinuing professional development inorder to renew their licences

• Property Web site to be introduced• Linking of REVS data base to national system

to help identify stolen or written off vehicles

The Future

• Internet self-help facility will let consumersand traders establish their rights andresponsibilities 24 hours, 7 days a week

• Voice recognition system to assist REVScustomers calling outside office hours orwho are unable to use Internet service

• Single Call Centre for all OFT enquiries

* Effective full time positions

including Tribunal Members

(statutory appointments) and

Ministerial staff.


Office of Fair Trading

With the creation of the Department of

Commerce, there have been some changes

to Fair Trading’s approach to its core

business. Everything the Office does now

flows from the mission statement and key

corporate objectives of the new Department.

The mission statement and the corporateobjectives for the Department of Commerceare set out on the opposite page. Within thisframework, Fair Trading continues to beresponsible for the following key objectives:

• Appropriate safeguards for consumers withminimal restrictions on business and traders

• Maximum compliance with fair tradingstatutory requirements

• Accountable use, in all the Office’s activities,of public resources.

To address the first of these objectives, we aimfor a policy framework which balances theinterests of consumer and traders. We achievethis through a strategy of comprehensive,proactive policy and regulatory review.

For the second of the three key objectives weaim to provide accurate information to thepublic and to provide effective enforcement

Planning

Framework

and dispute resolution. Our strategies toachieve these aims are:• proactive education activities• responsive enquiry service• targeted compliance activities• effective informal complaint handling.

The third objective is addressed throughminimising service delivery costs and theefficient use of internal resources to meetclient requirements. The strategies employedinclude active process review and performancemonitoring and active use of structured clientfeedback to review and improve services.

Performance reporting

and quality

To allow continuity for groups with an interestin tracking the Office’s performance, thesethree objectives have been retained as the basisfor structuring this publication. Performanceinformation for the indicators linked to theseobjectives is set out at the start of each chapter.

As in past years, the indicator results are beingused, instead of guided self-assessment, as thebasis of targeted business improvement/qualityinitiatives. The outcomes are shown in thetables on pages 11, 21 and 43.


Who we areWe are the government agency established

to support a climate that makes doing

business in NSW simple, accessible and fair

for employees, consumers and industry and

achieve best value for government through

the services we provide and our processes

and commercial activities.

What we doWe provide services and advice to ensureconsistent, fair and ethical business practices inNSW for government, industry, employees andconsumers through:

• Compliance with industrial obligations• Compliance with fair trading principles• Licensing• Education and information services• Use and application of technology• Transparent and consistent procurement

practices.

We provide shared services and projects toreduce the cost and risk in conductingGovernment business and service deliveryincluding:

• Procurement• Public infrastructure• Property• Corporate Services• E Services• Education and information services• Telecommunications and IT infrastructure.

We provide access to information, services andexpert advice to our customers through ourbusiness units, online facilities and regionalpresence.

How we do it• We make a difference by delivering value in

everything we do.• We demonstrate the highest levels of ethical

behaviour, integrity, impartiality and fairnessin our dealings with others.

• We strive to be leaders in our fields ofexpertise.

• We’re a team working towards common goalsbased on the needs and expectations of thecommunity, our stakeholders, customers,clients and staff.

• We encourage, recognise and rewardinitiative and innovation.

Who we serve• We serve consumers, employees, employers

and business by safeguarding rights andadvising on fair and ethical practice.

• We serve Government agencies by reducingthe cost and risk in conducting Governmentbusiness and delivery of services.

• We serve consumers, business and oursuppliers in collaboratively developing aclimate that makes interacting and doingbusiness with NSW Government simple,accessible and with minimal risk.

Within the

NSW community:

fair marketplace

and workplaces

For NSW

business:

simple, transparent

dealings with Government

Across NSW

Government:

value for money and

improved services through

optimal management of

enablers and support

activities

Within

Commerce:

accountable internal

use of public resources

Department of

CommerceMission statement and values

Corporate Objectives


Our

Structure

Brian Given

AssistantCommissioner

Operations

Lyn Baker


Customer &Property Services

Lindsay

Le Compte

General Manager

Home BuildingService

Rod Stowe


Policy & Strategy

• Legal ServicesDivision

• Compliance &StandardsDivision

• REVS

• Registry ofCo-operatives

and Associations

• CustomerServicesDivision

• Property &LicensingDivision

• StrataSchemes &MediationServices

• ManagementServicesDivision

• Policy &StrategyDivision

David O’Connor

Commissioner for Fair Trading


The Hon. Reba Meagher, MP

Minister for Fair Trading

Minister Assisting the Minister forCommerce

The Hon. John Della Bosca,MLC

Minister for Commerce

Office of Industrial Relations

Office of GovernmentProcurement

Office of Informationand Communications

Technology

Office of GovernmentBusiness

Kate McKenzie

Director-GeneralDepartment of Commerce


Legislation

The Office of Fair Trading administers thefollowing legislation:

• Associations Incorporation Act 1984

• Business Names Act 1962

• Business Names Act 2002 – partially unproclaimed

• Community Land Management Act 1989

• Consumer Claims Act 1998

• Consumer Credit Administration Act 1995

• Consumer Credit (New South Wales) Act 1995

• Consumer, Trader and Tenancy Tribunal Act 2001

• Contracts Review Act 1980

• Conveyancers Licensing Act 1995

• Conveyancers Licensing Act 2003 –partially unproclaimed

• Co-operatives Act 1992

• Co-operative Housing and Starr-BowkettSocieties Act 1998

• Credit Act 1984

• Credit (Finance Brokers) Act 1984

• Credit (Home Finance Contracts) Act 1984

• Door-to-Door Sales Act 1967

• Electricity Safety Act 1945 Part 4C(remainder, Minister for Energy)

• Fair Trading Act 1987 No. 68.

• Fitness Services (Pre-paid Fees) Act 2000

• Funeral Funds Act 1979

• Gas Supply Act 1996 (Section 83A)

• Holiday Parks (Long-term Casual Occupation) Act2002.

• Home Building Act 1989

• HomeFund Commissioner Act 1993

• HomeFund Restructuring Act 1993,ss 14, 15, 16 and Schedule 2 (remainder Ministerfor Housing).

• Landlord and Tenant Act 1899

• Landlord and Tenant (Amendment) Act 1948

• Landlord and Tenant (Rental Bonds) Act 1977

• Mock Auctions Act 1973

• Motor Dealers Act 1974

• Pawnbrokers & Second-hand Dealers’ Act 1996

• Prices Exploitation Code (New South Wales) Act1999.

• Prices Regulation Act 1948

• Property, Stock and Business Agents Act 1941

• Property, Stock and Business Agents Act 2002 -unproclaimed

• Registration of Interests in Goods Act 1986

• Residential Parks Act 1998

• Residential Tenancies Act 1987

• Retirement Villages Act 1999

• Strata Schemes Management Act 1996

• Trade Measurement Act 1989

• Trade Measurement Administration Act 1989

• Travel Agents Act 1986

• Valuers Registration Act 1975

• Warehousemen’s Liens Act 1935

Fair Trading


Objective one:

This is the first of two core objectives that contribute to our

strategic intent of a fair marketplace within the NSW

community. In the fields of consumer goods and services,

accommodation and property services and home building

we aim to develop and maintain a policy and legislative

framework that creates a balance between the interests of

consumers and traders.

Appropriate safeguards for

consumers with minimal

restrictions on business and

traders


Major policy issues

The Government’s home building reform

agenda dominated our policy focus for

much of the year – resulting in significant

new consumer protection, dispute resolution,

licensing and insurance reforms as well as

measures to lift the quality and consistency

of construction.

The principal vehicle for these improvements

is the newly established Home Building

Service. It encompasses all the home

building regulatory functions of the Office of

Fair Trading – plus additional resources. Its

effectiveness will be evaluated after two

years.

Consumer credit was another area of major

interest. As a result of NSW and national

efforts, consumers can now use mandatory

comparison rates to select the credit

products that best suit their needs. People

using mortgage and finance brokers are set

to benefit from access to better information

about the services they are using. Some pay

day lenders are still engaged in

unscrupulous lending. We are currently

involved in national efforts to rein them in

through amendments to the Consumer Credit

Code.

Other significant policy reforms are

underway in connection with the sale of gas

appliances, electricity provided to people

living in residential parks as well as the

regulation and fund-raising activities of

cooperatives. Practices in the introduction

agencies industry can sometimes be

contentious. A review will determine if

specific consumer protection laws are

warranted.


Performance InformationKey outcome/outcome measure 98-99 99-00 00-01 01-02 02-03 Target 03-04

Outcome: Appropriate safeguards for consumers

with minimal restrictions on business

and tradersMeasure: Proportion of legislation assessed as

meeting net public benefit test.

Interpretation/commentIt is extremely hard to devise a methodology for directly measuring the ‘fairness’ of the policy and legislative

framework to all sections of the community. The Office uses an indirect measure which shows the proportion of

legislation which has undergone a rigorous process to ensure that it is necessary. A net public benefit test is applied,

and this involves examining both social and economic factors. The table above reflects the proportion of legislation

which, to date, has undergone this test or a similar process. All of the Fair Trading reviews subject to the National

Competition Policy review program have been completed although several national reviews are awaiting

consideration. This brings to 100% the proportion of legislation which has been subjected to the process described

above. For the future, the Office will aim to ensure that any new or amended legislation or legislation subject to

statutory reviews is subjected to scrutiny through this or a similar process, maintaining this item at the target 100%.

Home building reformOn 13 March 2002 Parliament established theJoint Select Committee on the Quality ofBuildings. The Committee was established as aresult of a perception in the community thatthere were significant problems with newresidential construction. It was asked todetermine whether there are enough checksand balances existing to ensure consumers areguaranteed that their new homes are safe,properly certified and built to satisfactorystandards.

The report of the Committee (CampbellReport) was released in July 2002 andaddressed, in particular, issues related to theprivate certification process, minimumbuilding standards, builder and otherpractitioner licensing and the roles of the thenDepartment of Fair Trading and the Consumer,Trader and Tenancy Tribunal.

In October 2002, in response to therecommendations of the Campbell Report, theGovernment approved the establishment of anOffice of Home Building (now HomeBuilding Service) within the then Departmentof Fair Trading with regionalised service

delivery. The Home Building Service will bethe subject of a performance audit after twoyears of operation.

The Government also approved the preparationof legislation to improve the licensing,consumer education and dispute resolutionprocesses for building work. The legislation isaimed at ensuring that the building regulatorysystem is well coordinated, focused on pro-active measures to provide consumers with safeand well constructed buildings and easy accessto dispute handling systems.

The regulatory system aims to ensure thatlicensing processes establish minimum levelsof skills, experience and conduct for buildersand that builders can be held accountable fortheir actions and that effective complaints anddispute resolution processes are establishedthat allow consumers to seek redress for poorlyconstructed buildings.

At the close of the reporting period a majorityof the proposed reforms had either beencompleted or substantial progress towardsimplementation had been achieved. Theyinclude the following.

45% 55% 60% 100% 100% 100%


Home Building Service

The Home Building Service (HBS) waslaunched by the then Minister on 17 February2003. The establishment of HBS bringstogether all building related functionspreviously undertaken by different areas of theOffice of Fair Trading (OFT).

These functions cover licensing, complianceand insurance including the former BuildingServices Corporation schemes and privatehome warranty insurance. The HBS alsoencompasses new functions such as disputeresolution, inspections and training andeducation. Regional activities of HBS will bebased at OFT’s statewide network of FairTrading Centres.

The HBS administers the Home Building Act1989, which regulates the home building sectorthrough a system of licensing and theinvestigation of building complaints andregional compliance programs.

Fairer contracts

Proposals to amend the Home Building Regulation1990 will ensure that contracts are fair andreasonable for consumers and builders. Theamendments will improve both parties’understanding of the contract and provideanother means of specifying quality standardsover and above the broader statutory warrantiesalready contained in the legislation.

The amendments were scheduled to befinalised in July 2003 with commencementproposed for 1 January 2004. Once in effect,contracts will include:

• clauses stating that the work is to conform tothe Building Code of Australia and allrelevant Australian Standards and conditionsof consent

• provisions that variations to design plansmust be agreed in writing by all parties to thecontract

• a cooling off period

• a checklist for consumers and builders

• a ‘signing page’ to certify that the consumerhas been provided with and has read themandatory consumer brochure that must beincluded with all contracts.

Early intervention dispute resolution

An early intervention dispute resolutionprocess has been developed to replace one thathas been operating in the Consumer, Traderand Tenancy Tribunal (CTTT).

From 1 July 2003, HBS building inspectorswill be able to investigate and report on acomplaint and undertake on-site inspectionsand issue rectification orders whereappropriate. The inspector’s report will be ableto be used in any proceedings in the CTTTrelating to the work. A system of benchmarktimeframes, checklists, procedure manuals,templates, training and performancemonitoring has been developed forimplementation of the new process.

Home warranty insurance

In December 2002 Dexta Corporation, one ofNSW’s three approved home warrantyinsurers, withdrew from the market. On 5 May2003 the Minister for Commerce announced areview into the operations of the homewarranty insurance scheme with an interimreport prepared on 30 June 2003. A final reportwas delivered to the Government on 30September 2003.

The Building Insurers’ Guarantee Corporation,the primary instrument of the Government’sHIH Rescue Package, continued to assisthomeowners affected by the insurer’s collapse.By the end of the financial year $22,731,958 hadbeen paid to 375 claimants.

Home building legislative reform

The Government’s home building reformsinclude a range of legislative amendments.These are described in Legislative Change –Significant reforms on page 15.

Other home building reforms

A number of reform initiatives relate toimproving information for home buildingconsumers and licensed builders andcontractors. These are set out in Objective 2;under Information for consumers andtraders - see page 34. Licensing reforms forthe home building industry are also set out inObjective 2; under Home Building Actreforms - see page 34.

Consumer CreditFrom 1 July 2003, credit providers mustprovide a mandatory comparison rate for fixedterm consumer credit products. Thecomparison rate will assist consumers to shoparound for the best price on fixed term loanssuch as home loans and personal loans. Thecomparison rate will be shown inadvertisements whenever interest rates areadvertised, and will be available in schedule

Proposals to amend

the Home Building

Regulation 1990 will

ensure that contracts

are fair and reasonable

for consumers and

builders.


form wherever consumers apply for a loan,including the Internet. To assist in theimplementation of this consumer initiative, theNSW Office of Fair Trading has providedspeakers at seminars for industry members, aswell as developing explanatory material forboth the national Credit Code Web site and forrelated fact sheets.

National Regulation of Finance Brokers

As consumer problems with finance andmortgage brokers occur in all Australianjurisdictions, the Standing Committee ofOfficials of Consumer Affairs, whichcomprises the senior officials of all State andTerritory consumer affairs agencies, iscurrently examining the possibility of anational approach to the regulation of brokers.New South Wales is taking a leading role inthis discussion.

Pay day lenders

This industry, which services the short term,low value credit market, was first regulated bythe Consumer Credit Code in December 2001.Since that time, further monitoring of thepractices of the industry has resulted in anexamination by the Ministerial Council onConsumer Affairs (MCCA) of ways in whichthose practices might be addressed.

Officers of the state consumer agencies whohave monitored the industry have found thatsome of the more undesirable practices arespecific to these high interest lenders and falloutside the Consumer Credit Code. MCCA willtherefore give consideration to providingfurther protection under that legislation thatapplies only to this industry sector.

The Office of Fair Trading has also found thatsome lenders are attempting to avoid the Codeby various devices. The Code is thereforeunder constant review to ensure any loopholesare closed.

Consumer Credit Code

In August 2002, MCCA approvedrecommendations in the final report of theNational Competition Policy Review of theConsumer Credit Code (the Code) and in thePost Implementation Review of the Code.

These recommendations focus on improvingthe performance of the Code and ensuring thatit stays relevant to the credit marketplace. NewSouth Wales is developing the proposals arisingfrom those reviews for improving the

precontractual disclosure provisions. This willresult in simpler up-front information aboutthe most important aspects of the creditproduct so that the consumer can be confidentthat the loan is affordable and appropriate.

These improvements will complement theNew South Wales comparison rate initiative togive consumers the best possible chance to getthe cheapest, most appropriate loan.

Gas appliance safetyAs part of the regulatory changes accompanyingthe introduction of full retail competition inenergy, responsibility for gas appliance safetywas transferred from the Ministry of Energyand Utilities to the Office of Fair Trading.

Section 83A of the Gas Supply Act 1995 providesfor the making of regulations concerning thedesign, construction and labelling of gasappliances; the prohibition of, or imposition ofconditions on the sale or supply of gasappliances; and, the connection, alteration,maintenance, repair, replacement and operationof gas appliances.

During the year we developed a proposal for anew regulation which will introduce a ‘point ofsale’ control to prohibit the sale of gasappliances which have not been certified orapproved and give the Commissioner for FairTrading the authority to approve certificationschemes.

Residential parks - electricityIn most NSW residential parks, the park ownersupplies permanent residents with electricity.As a result of the introduction of full retailcompetition in energy, across-Governmentaction has been taken to provide park residentswith a level of consumer protection consistentwith that enjoyed by the customers of licensedelectricity retailers. For example, park ownerscannot charge more than the regulated retailtariff of the local standard retail supplier andpark residents have access to the disputeresolution services of the Energy and WaterOmbudsman.

We are now developing customer servicestandards based on those provided to electricitycustomers supplied under a standard formcontract by a standard retail supplier. We areundertaking extensive consultation with themany government, industry and community-based stakeholders before finalising a proposal.

This will result in

simpler up-front

information about the

most important aspects

of the credit product...


Co-operatives legislation

The Co-operatives National Working Party,which is currently convened by New SouthWales, has developed drafting instructions tomake minor amendments to the Co-operatives Act(NSW) provisions for the issue of Co-operative Capital Units (CCU’s). Theamended provisions for this fundraisinginstrument have been endorsed by each Stateand will be adopted under the Core ConsistentProvisions Scheme for co-operativeslegislation in due course.

Drafting instructions were also developed toprogress the MCCA endorsed proposal toreplace the existing foreign co-operativesregistration scheme with a more facilitativescheme based upon mutual recognitionprinciples. Under the proposed new scheme,co-operatives registered in one State (the‘Home State’) will be permitted to carry onbusiness in another State (the ‘away State’) aftera simple and inexpensive notification isprovided to the Registrar of the away State. Thescheme will reduce the administrative burdencurrently placed on co-operatives wishing tocarry on business interstate and allow awayState Registrars sufficient power to control theactivities of foreign co-operatives when theycarry on business in their State.

Introduction agenciesThe NSW government has committed toreviewing the practices of the introductionagency industry to determine whether specificlaws are required to improve consumerprotection for people who use these services.The Office of Fair Trading has conductedpreliminary investigations into the industry andwill undertake consultation with key industrystakeholders later in 2003.

Advisory councilsFive ministerial advisory councils provideadvice to the Minister for Fair Trading.Membership of the councils was renewed inFebruary 2003. The members represent diverseinterests and expertise to ensure the Minister’sfair trading policy advice reflects the broaderinterests of the community. Membershipdetails of appointees are set out on page 52.

National Competition

Policy reviews

In 1995, all Australian Governments signed

the National Competition Principles

Agreement. This required the jurisdictions to

review all laws that restrict competition,

including those that limit market entry though

licensing regimes or which reduce market

contestability. In NSW, this led to National

Competition Policy (NCP) reviews of 191

pieces of legislation. Of these, 30 were the

responsibility of OFT – the second largest

review program in the State.

The NCP review program has now come to a

close. By 30 June 2003 all our NCP reviews

had been completed apart from National

reviews of the Credit Code, Trade

Measurement and Travel Agents legislation.

The only NSW laws subject to the NCP review

but which had not had subsequent legislative

amendments either passed or introduced into

Parliament by 30 June 2003 were the

Electricity Safety Act and the Funeral Funds

Act.

Throughout the review program, consumers,

businesses, industry and interest groups

were consulted at every stage to ensure that

NSW’s consumer protection regulatory

objectives are met as efficiently and cost

effectively as possible. In all but a few cases,

the reviews reinforced the continuation of

and sometimes the strengthening of existing

regulatory schemes.

Electrical SafetyThe Review of the Electricity Safety Act 1945recommended that the current regulatorysystem, which protects consumers fromdangerous electrical appliances andinstallations, be maintained. The Review alsorecommended that on-the-spot fines beintroduced, which will simplify disciplinaryprocedures for minor breaches of the Act. AFinal Report on the Review was released forpublic consultation on 1 May 2003. Legislativeamendments are under consideration.

Funeral Funds ActThe final report on the Review of the FuneralFunds Act 1979 was released in April 2002. TheReview concluded that the funeral fundindustry continues to require close prudentialscrutiny. The Review also identified legislativeduplication between NSW andCommonwealth Government regulatoryregimes. The Review concluded thatprudential oversight in these cases would be

...the reviews reinforced

the continuation of and

sometimes the

strengthening of existing

regulatory schemes.


more appropriately undertaken at theCommonwealth level. The implementation ofthe Review’s recommendations has beendelayed due to uncertainty about theapplicability of the Commonwealth’s FinancialServices Reform legislation to funeral fundsoperating in NSW. However, theCommonwealth introduced a new Regulationin March 2003, which will reduce ambiguity inthis area. Amending legislation is proposed forintroduction in late 2003.

Legislative change

The administration of over 40 different acts

dictates an extensive and on-going legislative

program. Altogether, 10 bills were passed by

Parliament following review or development

by OFT. Some other laws came into effect for

the first time during the year. A number of the

most significant changes involved home

building reforms flowing from the Campbell

Report.

Other important amendments improved crime

prevention and consumer protection for car

buyers; home sale auction processes;

protection for job seekers and rights for

holiday park users. Licensing or

administrative reforms also affected

conveyancers, valuers, business names, the

management of strata schemes, product

information standards, tenancy laws and

property, stock and business agents.

Bills assentedThe bills assented to during the year included:

• Building Legislation Amendment (Quality ofConstruction) Bill 2002

• Business Names Bill 2002

• Fair Trading Amendment (Employment PlacementServices) Bill 2002

• Holiday Parks (Long-term Casual Occupation) Bill2002

• Pawnbrokers and Second-hand Dealers AmendmentBill 2002

• Strata Schemes Management Amendment Bill 2002.• Valuers Bill 2003

• Conveyancers Licensing Bill 2003

• Consumer Credit Administration Amendment(Finance Brokers) Bill 2003

• Fair Trading Amendment Bill 2003 (work completedduring review period - passed by Parliament 3 July2003)

Statute law revisionThe Statute Law (Miscellaneous Provisions) Act 2002No. 2 amended the:

• Property, Stock and Business Agents Act 1941

• Strata Schemes Management Act 1996

• Landlord and Tenant (Amendment) Act 1948.

The Statute Law (Miscellaneous Provisions) Act 2003No. 1 amended the:

• Home Building Legislation Amendment Act 2001

• Home Building Act 1989

• Pawnbrokers and Second-hand Dealers Act 1996

• Property Stock and Business Agents Act 2002

• Strata Schemes Management Act 1996.

Subordinate legislation reviewA number of regulations were made under ourregular Subordinate Legislation ReviewProgram as well as for policy andadministrative reasons.

Remade at September 2002:

• Consumer Credit Administration Regulation 2002

• Consumer Credit (NSW) Special ProvisionsRegulation 2002

• Fair Trading (General) Regulation 2002

• Gas Supply (Gas Meters) Regulation 2002

• Trade Measurement Administration Regulation 2002

• Trade Measurement Regulation 2002

• Warehousemen’s Liens Regulation 2002

In preparation to be remade for September2003:

• Pawnbrokers and Second-hand Dealers Regulation2003

• Landlord and Tenant (Rental Bonds) Regulation2003

Significant reforms

Fair Trading Act

A particularly important NCP review involvedthe Fair Trading Act 1987. The review not onlyexamined competition issues but also looked atthe effectiveness of the legislation. It led toseveral amendments being passed by the NSWParliament on 3 July 2003.

Effective enforcement was a major focus. Tothis end, the court now has the power to sendrepeat offenders to jail for a period of up tothree years. This power is aimed at curbingtraders who operate scam after scam and whoplace the proceeds out of reach of the law toavoid consumer access to redress. Besides jailterms, the court is also able to prevent suchoperators from trading again in New SouthWales. Local court penalties have beenincreased and that court now has the power tocompensate consumers where a trader has beenconvicted of an offence.

The scope of the Act has now been extended toinclude direct commerce – the term nowcovering traditional door to door sales andtelemarketing. The new provisions include acooling off period for both types of marketing

...the court now has

the power to send

repeat offenders to jail

for a period of up to

three years


and a right to cancel a contract and return goodsduring that period. The Act now restricts thehours during which such marketing can takeplace – addressing major consumer concerns.

The capacity of the Commissioner for FairTrading to require substantiation of advertisingclaims has been strengthened by making it anoffence for a trader to be unable to back uptheir claim. This means that consumers willnot be subject to grossly misleading statementsthat set out to induce them to buy. As well, thelaw has been clarified in relation to when aproduct can be claimed to be a “Product ofAustralia” or “Made in Australia”.

And for the first time, post sale consumerprotections are now included in the Act tomaintain consistency with the Trade Practices Actand streamline consumer remedies.

Mortgage & finance brokers

Finance brokers or mortgage brokers provideintermediary services between persons seekingfinance and credit providers - usually in returnfor a commission paid either by the consumeror the credit provider. A finance or mortgagebroker finds suitable potential lenders offeringcredit products that match their client’s needs,assists the client in applying for a loan andobtains approval for the loan. The loan contractis then taken out between the credit providerand the client. Consumers are increasinglyusing finance brokers to help them find thebest loan for their needs.

The Consumer Credit Administration Amendment(Finance Brokers) Act 2003 was passed on 30 June2003. It will improve the protection available toconsumers who use finance brokers, andencourage competition in the industry. TheBill provides for:

• a written contract to be entered into and acopy given to the consumer before financebroking commences

• the contract to contain details of the credit tobe obtained

• up-front disclosure of the amount ofcommission (if any) payable by the consumerand when and how the commission ispayable

• up-front disclosure of commissions paid tothe finance broker by the credit provider oranyone else (regulations will also requiredisclosure of fees paid by the broker to thirdparties who refer business to the broker)

• up-front disclosure of the fact that thebroker’s recommendations will be drawnfrom a limited range of lenders

• the broker to be prohibited from claiming

commission before securing the credit or ifthe credit does not match the terms in thecontract

• valuation fees, and credit application andestablishment fees to be paid directly to theperson authorised to instruct the valuer orassess the credit application rather than to thebroker

• records of transactions to be kept for sevenyears

• consumer redress through the NSWConsumer, Trader & Tenancy Tribunal forexcessive commission, unfair, dishonest orfraudulent conduct by a broker, or conductwhich breaches a contract or breachesconsumer credit legislation.

Home building

The Building Legislation Amendment (Quality ofConstruction) Act 2002 was passed in November2002. As discussed on page 10, this followed anannouncement that the State Government hadset up a Joint Parliamentary Inquiry to lookinto building standards across NSW.

The Select Committee’s report was released inJuly 2002 and contained 55 recommendations toimprove the building regulation system and toprovide greater consumer protection.

The Government’s response to the Inquiry,which was made on October 29, 2002, outlineda range of legislative and administrativereforms.

The legislation amended the EnvironmentalPlanning and Assessment Act 1979 and Regulation, theHome Building Act 1989 and Regulation and theConveyancing (Sale of Land) Regulation 2000.

The key changes to the Home Building Act werethat:

• builders will have to undertake a financialtest to be licensed

• new prescribed standard conditions inbuilding contracts will be implemented.

• work will have to conform to the BuildingCode of Australia and relevant standards

• inspectors will be empowered to makerectification orders against builders

• the Consumer, Trader and Tenancy Tribunalwill be able to accredit experts to reportjointly to the parties in dispute (the expertreport and the Building Inspector’s reportwill be the only reports used unless theTribunal determines otherwise).

The Act also made a number of changes to theprocesses for the certification of buildingwork.

...up-front disclosure

of commissions paid to

the finance broker by

the credit provider or

anyone else...


The Home Building Amendment (Insurance) Act2002, introduced major changes to theoperation of home warranty insurance from 1July 2002. Since then, cover under the privatehome warranty insurance scheme has beenprovided on a last resort basis. That is, a homeowner who suffers loss from a builder’sdefective or incomplete work can only make aninsurance claim if they have been unable torecover compensation from the contractor or ifwork has not been rectified or completed dueto the insolvency, death or disappearance of thecontractor. These same provisions apply toclaims in relation to owner-builder work andthe supply of a kit home.

In the case of a claim for non-completion ofwork, the insurance contract may limit liabilityto an amount that is 20% of the contract price ofthe job. The amount of cover for defective andincomplete works remains at $200,000, but theperiod of cover has changed from 7 years to 6years for structural defects and 2 years for non-structural defects.

The Home Building Amendment (Licences andCertificates) Regulation 2003 was introduced on 20June 2003. It reformed the licence andcertificate renewal procedures in cases where aperson was bankrupt or involved in managing acompany that was being wound up.

The amendment enables the Commissioner toissue a contractor licence or qualifiedsupervisor certificate in certain circumstances.This includes where the Commissioner issatisfied the person has taken all reasonablesteps to avoid the winding-up order or theappointment of a controller or administrator orif, in the Commissioner’s opinion, there is noevident risk to the public that the applicantwould be unable to complete any contracts.Previously, the Commissioner was required toautomatically cancel the licence of any builderor contractor who became bankrupt.

Holiday parks

The Holiday Parks (Long-term Casual Occupation)Act 2002 was passed in October 2002 and cameinto effect on 28 February 2003. The legislationprovided rights for long-term recreational parkoccupants who left their vans on site on apermanent basis. Uncertainties over the rightsand obligations of both park owners andoccupants were removed, a standardoccupation agreement provided, minimumnotice periods specified and a disputeresolution provided through the Consumer,Trader and Tenancy Tribunal.

Valuers

The Valuers Act 2003 was passed by Parliament inMay 2003. It provides for a range of registrationscheme reforms including:

• streamlining five categories of registrationinto one category with conditions

• extending the duration of registration fromone year to three years

• providing greater flexibility in relation toqualification requirements by enabling theprescription of competency standards

• enabling more responsive amendment ofqualification requirements by providing thatthey be approved by the Commissioner forFair Trading rather than the Minister

• streamlining the complaints, disciplinaryaction and enforcement provisions to bringthem into line with other professionallicensing schemes

• making the appeals process faster and cheaperby referring them to the AdministrativeDecisions Tribunal rather than the Land andEnvironment Court.

Conveyancers

The Conveyancers Licensing Act 2003 was passed on20 May 2003. The Act improves consumerprotection, allows conveyancers to incorporate,introduces ‘rules’ for conveyancers, clarifiesand updates existing legislation and reforms thedisciplinary scheme.

The reforms are based on therecommendations of a National CompetitionPolicy review of the now repealed ConveyancersLicensing Act 1995. The review recommendedretaining the current occupational licensingmodel as the regulatory option which bestachieves the objectives of the Act. As part of thereview process some aspects of the regulationof conveyancers were identified for legislativereform. The Act also retains the currentboundaries for the legal work that aconveyancer may undertake.

Employment agents

The Fair Trading Amendment (Employment PlacementServices) Act 2002 and the Fair Trading (General)Amendment (Employment Placement Services)Regulation 2003 commenced on 17 February2003. The new legislation means thatemployment agents are no longer required tobe licensed. However they must comply withthe new consumer protection provisions in theFair Trading Act 1987.

Employment agents must now inform eachclient in writing that it is illegal for them tocharge the client a fee for finding them

Uncertainties over the

rights and obligations

of both park owners

and occupants were

removed...


employment. Agents must also inform theirclients that it is illegal for them to engage inmisleading or deceptive conduct. This mightinclude advertising the availability of a positionwhen the agency knows no such position existsor knowingly giving misleading information toa job seeker about the nature of a position.

Product information standards

The Fair Trading (Product Information Standards)Regulation 1997 was repealed by the SubordinateLegislation Act 1989 on 1 September 2002. At thistime, the opportunity was taken to consolidatethis regulation with others made under the FairTrading Act 1987. These included the:

• Fair Trading (Product Safety Standards) Regulation2000

• Fair Trading (Penalty Notices) Regulation 1998

• Fair Trading (Savings and Transitional) Regulation1997.

The consolidation removes unnecessaryduplication of information and assists industryand other stakeholder groups when accessingthe legislation via electronic databases.

The consolidated Fair Trading (General) Regulation2002, which commenced on 1 September 2002,covers:

• safety standards for various goods (such as spaoutlets, children’s toys and protectivehelmets for cyclists),

• product information standards to be used for:- textile products- care labelling of clothing and certain other

softgoods- the retail sale of regular unleaded petrol atpetrol stations,

• certain offences under the Fair Trading Act1987 for which penalty notices may be issued.

Motor trade

Many of the Government’s motor tradereforms, contained in the Motor Trade LegislationAmendment Act 2001 were implemented duringthe year. The reforms promote consumerprotection, crime prevention andadministrative reform. They include:

• a one day cooling off period for cars boughton credit provided by the dealer or where theagent acts as an agent of the finance provider

• allowing claims to be made on the MotorDealers Compensation Fund for consignedgoods damaged while in a dealer’spossession, failure to pay for a trade-invehicle and failure to supply a motor vehiclethat has been fully paid for

• allowing claims on the Motor DealersCompensation Fund for commercialvehicles bought for private use

• an increase in penalty notice fines from $50to $330

• a 10 year motor dealer or repairer licence banon people convicted of motor vehicle ormotor vehicle parts theft

• allowing authorised officers to serve holdingorders to prohibit dealers and repairers fromaltering, disposing or parting with motorvehicles or related equipment for 14 days

• requiring licensees suspected of receiving ordealing in stolen goods to show cause whytheir licence should not be revoked

• the establishment of the Motor VehicleRepairs Industry Authority.

Business names

The Business Names Act 2002 was assented to on29 November 2002. The Act:

• exempts businesses who trade solely over theInternet from the requirement to register anddisplay business names

• allows traders to register multiple businessnames

...a one day cooling off

period for cars bought

on credit provided by

the dealer...


• abolishes the fee to update details on theRegister of Business Names and increasesthe penalty for failing to update details

• provides the Administrative DecisionsTribunal with jurisdiction to reviewdecisions of the Commissioner for FairTrading with respect to the registration of abusiness name and

• abolishes the requirement that interstatetraders who register a business name in NSWmust have a resident agent in NSW.

Property stock and business agents

The Property, Stock and Business Agents Act 2002was passed by the NSW Parliament in June2002 and was given the Governor’s Assent on 10July 2002.

The new Act followed an NCP review of thecurrent legislation, which dated from 1941,involving an extensive consultation processover several years.

The Act, scheduled to come into effect on1 September 2003, sets out a new regulatoryframework for the contemporary propertymarketplace. The Act:

• simplifies licensing and disciplinaryprocedures

• removes unnecessary requirements

• introduces measures to raise the competencyand professional standards of agents.

To protect consumers, the legislation:

• increases agents’ accountability for theiractions, for example when dealing withclients’ funds or marketing properties

• reforms the auction process and

• provides for compensation and disputeresolution when things go wrong.

As part of the preparation for thecommencement of the new Act, the draftProperty, Stock and Business Agents Regulation 2003was released by the Minister for Fair Tradingfor public consultation in May 2003. Amongother things, the Regulation provides for Rulesof Conduct to set high ethical standards foragents and prescribes fair terms which must beincluded in agency agreements. The Regulationalso sets out detailed procedures to support thenew requirement for registering bidders atauctions.

Strata schemes

The Strata Schemes Management (Amendment) Act2002 was passed in November 2002 andcommenced on 10 February 2003. It broughtcaretaker contracts within the legislation andimposed a maximum 10-year term on suchcontracts. The Consumer, Trader and TenancyTribunal was given jurisdiction to deal withcaretaker contract disputes. The Act alsolimited the use of proxy votes by stratamanaging agents and caretakers and placedsome restrictions on priority voting rights ofmortgagees.


Objective two:

This is the second core objective contributing directly to

our strategic intent. The legislative framework creates

rights and obligations for business, traders and

consumers. Maximising compliance with these

requirements ensures fairness in the marketplace. It’s an

important part of our role, achieved by providing

information and education for consumers and traders,

compliance monitoring and enforcement, complaint

handling and dispute resolution, and providing licensing,

registration and certification information.

Maximum compliance with fair

trading statutory requirements


Monitoring and enforcement

The following pages present a selection of

significant fair trading investigations and

prosecutions either concluded or underway

during 2002-2003. The cases illustrate the

range of unfair practices that disadvantage

consumers and genuine businesses alike

and they exemplify the typical results that

miscreants can anticipate once they are

detected, charged and dealt with by the

courts.

Tougher times lie ahead for habitual and

deliberate offenders. Sophisticated new

investigations technology is set to pin point

trouble spots faster and more effectively.

Enforcement tools such as substantiation

notices are being strengthened - making

failure to back up exagerated promotional

claims an offence.

A renewed focus on home building

investigations will help lift standards and

performance in one of the key sectors of the

State’s economy.

Increasingly, disciplinary actions and

prosecution results are reflecting community

impatience with traders who fail to abide by

Fair Trading laws or principles. It should

come as no surprise that industry life bans

and even prison terms are appearing more

frequently in judgements.

Intelligence softwareWe have introduced a new intelligencesoftware known as NetMap. It will provide uswith modern, flexible intelligence and analysiscapacity by quickly interpreting massiveamounts of data to find trends and links thatwill identify problem individuals andbusinesses. NetMap is able to find subtle andoften hidden links between people and places,objects and owners, actions and outcomes, anddescribe the connections between them.

This technology has been used by leading lawenforcement and intelligence agencies aroundthe world including the FBI, New ScotlandYard, ASIO, and major insurance companies intheir fight against fraud. We will use it for awide range of purposes including:


Performance Information

• tracing the origins of international scam mailand “sucker lists”

• profiling and identifying importers who posea high risk in relation to the distribution ofunsafe children’s toys and other products

• identifying individuals who have obtainedbusiness licences through fraudulent means.

Electronic commerceFair Trading is actively engaged in internationalefforts to combat fraudulent e-commerce. Eachyear participating agencies, in Australia led bythe Australian Competition and ConsumerCommission, sweep the Internet to identifysuspect Web sites. Organised by theInternational Consumer Protection andEnforcement Network (formerly theInternational Marketing SupervisionNetwork) this year’s sweep took place inFebruary 2003. It focussed on misleading ordeceptive claims about travel arrangements. Aslicensing of travel agents in Australia is a State-based activity, sweep results also noted whetherAustralian-based agents disclosed licencedetails as required. During the sweep, in whichOFT officers worked from ACCC’s Sydneypremises, a number of sites makingquestionable claims were identified andreferred for initial action by the ACCC.

Throughout Australia, the sweep identifiedproblems on 193 web sites. Of particularconcern was that 31% were not secure sites, yetwere requesting personal details, takingbookings or accepting credit card details and12.5% did not disclose the licence number, asrequired under individual State legislation.

More effectiveFair Trading prosecutionsA February 2002 report to the Minister for FairTrading and the Attorney General (Report toMinisters of the Working Party on Fair TradingProsecutions) sets out a range of actions toenhance the role of Fair Trading prosecutionsand achieve more consistent sentencing. ByJune 2003, a number of important results hadbeen achieved in conjunction with otheragencies.

• The Property Stock and Business Agents Act 2002includes a provision allowing a Local Courtto impose a maximum penalty of 100 penaltyunits (or $11,000).

• The Crimes (Sentencing Procedure) Amendment(Additional Charges) Regulation 2002 permitsgreater prosecution flexibility by allowingthe court to take account of charges otherthan for the principal offence when dealingwith an offender.

1.Outcome: Provision of accurate information to

consumers and traders

Measure: Level of accuracy of information

provided

2.Outcome: Effective compliance enforcement

and monitoring

Measure: Percentage of prosecutions which

are successful

Interpretation/comment1. The Office conducted its fourth structured survey to independently test the accuracy of information provided to

consumers and traders. ACNielsen was engaged to conduct a “shadow shopping” exercise. A sample of 385 calls was

made to customer contact areas across the Office and the response to a range of questions was rated for accuracy,

based on sample answers provided in advance. The contractors found that accurate information was provided in 87% of

calls. Though limitations imposed by the survey sample size must be considered when interpreting the apparent degree

of movement, this is a decline from the excellent results achieved in the two previous years. Absorbing the impact of

two simultaneous, major change initiatives - the introduction of CASonline and new home building complaints - is likely

to have contributed to the results. Overall, this year’s outcome demonstrates one of the key reasons for conducting the

survey on a regular basis - it provides an ‘early warning’ system for anything impacting on service. This year’s results will

trigger targeted and vigorous improvement action.

2. Successful prosecution means prosecutions resulting in conviction as well as prosecutions where the offence is

proven but a conviction is not recorded. The 86% success rate this reporting period reflects an emphasis on the more

minor straightforward matters being dealt with by penalty notice as well as on testing a broader range of offences where

Court results are less predictable.

87% 93% 99% 87% �90%

96% 97% 96.5% 86% �90%

99-00 00-01 01-02 02-03 TargetKey outcome/outcome measure


• Prosecution practice has been varied to allow(whenever practicable) for the prosecutor toaddress the court on sentence of an offender.

• With the assistance of the Attorney General’sDepartment (Bureau of Crime Statistics &Research), results of Fair Trading

prosecutions are now being included in thesentencing database of the JudicialCommission.

• Material on Fair Trading prosecutions(including sentencing data) has been madeavailable for presentations to the magistracy.

Court/Tribunal Act No. of matters

Supreme Court

Injunction FT 7

HB 1

Legal Assistance/Intervention FT 8

Other CTTT 1

FT 1

RT 1

SC 1

Other 1

Contempt SC Rules 2

Total 23

District Court

Other FT 1

HB 1

MD 1

PSBA 3

Total 6

Local Court

Licence Complaints PSBA 14

Objections PSBA 26

Cost Applications J 1

Total 41

Administrative Appeals Tribunal

MR 1

Total 1

Administrative Decisions Tribunal

CL 4

FT 10

HB 9

MD 4

PSHD 1

Total 28

Consumer, Trader & Tenancy Tribunal

Show Cause HB 2

Insurance Appeals HB 52

Applications C 1

Total 55

Total all Civil Litigation 154

Civil Litigation

Civil Litigation includes:• injunctive and ancillary relief in the

Supreme Court• complaints in the Local and District

Court• objections in licensing matters under

the Property Stock and Business Agents Act• proceedings in the Administrative

Decisions Tribunal regarding reviewof decisions under the ConveyancersLicensing Act, Fair Trading Act, HomeBuilding Act, Motor Dealers Act,Pawnbrokers and Second-hand Dealers Actand the Travel Agents Act

• proceedings in the Consumer Traderand Tenancy Tribunal under the HomeBuilding Act relating to buildinginsurance and licence disciplinarymatters.

The Office’s Legal Services Divisionalso acts or instructs in various courtsand tribunals where the Minister orCommissioner intervenes inproceedings.

LegendC - Credit Act,

CL - Conveyancers Licensing Act,

CTTT - Consumer, Trader and Tenancy

Tribunal Act,

FT - Fair Trading Act,

HB - Home Building Act,

J - Justices Act

MD - Motor Dealers Act,

MR - Mutual Recognition Act,PSBA - Property, Stock & Business

Agents Act,

PSHD - Pawnbrokers and Second-

hand Dealers Act,

RT - Residential Tenancies Act,

SC - Supreme Court Act,

SC Rules - Supreme Court Rules


Successful Prosecutions

Act Offences Penalties $

Business Names 1 -

Conveyancers Licensing 3 1,427

Electricity Safety 51 25,655

Fair Trading 76 99,075

Home Building 47 71,547

Motor Dealers 206 267,257

Pawnbrokers & Second-hand Dealers 3 768

Property Stock & Business Agents 71 41,078

Trade Measurement 114 54,760

Travel Agents 4 154,373

Total 576 715,940

Penalty Notices

Penalty notices are used in relation to breaches of prescribed statutory provisions. Penalty noticesdo not take away the person’s right to have the matter determined by a court and payment of thepenalty does not constitute an admission of liability or prejudice any civil claim relating to thematter.

Penalty notices and fine totals

Acts Offences Penalties $

Business Names 15 3,050

Fair Trading 20 10,950

Home Building 246 104,250

Motor Dealers 219 77,010

Pawnbrokers & Second-hand Dealers 5 2,500

Property Stock & Business Agents 121 62,740

Registration of Interest In Goods 4 990

Trade Measurement 90 22,310

Trade Measurement (Weighbridges) Reg 97 41,070

Total: 817 324,870

Trading is developing a comprehensive

strategy to deal with these schemes. The first

part involves interrupting the delivery of scam

mail, and in the longer term, making it

economically unviable for scam promoters to

target NSW or Australian consumers.

Other investigations focused on those

perennial fair trading problems: misleading

advertising and the non delivery of promised

goods or services.

Xpress Priority

This scam mail scheme was operated byCanadian-based H.M.S. Direct Limited,Hallstone Products Limited and their principalofficer, David Stucky. Consumers werepromised a substantial cash prize but they werelikely to receive only cheap costume jewellery.Result. In November 2002, Fair Trading servednotice on Australia Post and seized more than

Significant investigations andprosecutions

Fair trading

During the year, we concentrated our

investigations on two major types of scam -

false billing, and international mail-order

scams. False billing, also known as telefraud

or invoice fraud, is the practice of unlawfully

demanding payment for the supply of

unsolicited goods or services. It’s a

nationwide problem and is prohibited under

the Fair Trading Act. A multi-state working

party of fair trading agencies is now seeking

to target major operators by obtaining Court

injunctions to put them out of business.

Overseas mail scams are bogus direct mail

promotions in which local consumers

receive unsolicited letters from overseas. In

return for a small payment, the letters promise

substantial rewards such as prizes or cash

benefits - which either never arrive or turn out

to be of far lower quality than promised. Fair


198,000 scam letters. In May 2003, the SupremeCourt granted far-reaching orders againstXpress Priority and the promoters of thescheme. The Court declared that the conductcontravened the misleading or deceptiveconduct provisions of the Fair Trading Act 1987.The Court also restrained the promoters fromsending that type of unsolicited scam mail toSydney for distribution to addressees in NSWor elsewhere, and ordered them to destroy theitems of mail already sent to NSW. It isbelieved that this is the first time an AustralianCourt has ordered the actual destruction ofscam mail.

Australasian Publications and

Advertising Pty Ltd

This trader was engaged in false billing. In thiscase the ‘services’ were advertisements to bepublished in certain magazines – which wereeither non-existent or published in only tokenquantities. Result. In December 2002 the NSWSupreme Court granted interim ordersprohibiting Australasian Publications andAdvertising Pty Limited, publishers ofNational Police Bulletin and StatewideFirefighters, from engaging in any publishingor advertising activities.

Credit Accounting Consultancy (CAC)

Investigations into this finance brokingconsultancy based in Glebe followed a highnumber of consumer complaints. CACpublished advertisements offering loanconsolidation and assistance to people inmanaging their debts. This was particularlyattractive to people with poor credit histories.Consumers complained that CAC not onlyfailed to obtain the loan they had requested, butthat their resulting financial circumstanceswere significantly worse than beforeapproaching the consultancy.

In December 2002, Fair Trading obtainedinterim orders in the Supreme Court thatrestrained the CAC directors from disposing oftheir assets and which led to the closure of thebusiness. Result. The matter is currentlyawaiting a further hearing in the SupremeCourt with a view to obtaining permanentinjunctions against the principal, David Ross,and several associates from being engaged inthe business of finance broking or arrangingcredit.

Trendwest Resorts South Pacific Pty Ltd

This company is involved in the promotionand sale of timeshare holidays in Australia andFiji. There were concerns about misleadingadvertising and the use of pressure sales tacticsin promotions. Result. Fair Trading raised these

issues with the company, which agreed toamend its promotional material and methods.In November 2002, the Australian Securitiesand Investments Commission obtainedconsent orders from the company relating to itspromotions. Fair Trading is continuing tomonitor the company’s conduct.

Infinity Forms of Yellow Remember

The company was investigated for misleadingand deceptive health claims used to promotethe sale of its bottled water. The water wasbottled in 50ml containers similar to thoseused in prescription and over the counterpharmacy medicine. The company claimed thatthe water could heal a variety of diseases andillnesses, including weak hearts, PMT,migraine, anxiety, muscle fatigue, alcoholdependence, pharmaceutical drug dependenceand cancer. Result. In July 2001 the Ministerwarned the public about dealing with Infinity.In October 2002, the company and itsprincipals consented to Supreme Court orderspermanently restraining them from falselyrepresenting the health benefits of theirproduct, and from carrying on businesssupplying any goods stated to be ‘empowered’to alleviate any physical or psychologicaldisorders.

Adrema Pty Ltd t/as National Sports

Marketing and Sports Stars Tours

These businesses, which specialised inarranging travel to international sportingevents, advertised extensively on the Internet.They sold airline tickets, hotelaccommodation, car hire and ancillary tours.Adrema collapsed in June 2001, stranding morethan 120 fans who had paid for tours to eventssuch as Wimbledon, the Ashes cricket tests, andthe British Open Golf. The company was not alicensed travel agent and consumers lost morethan $600,000. One of the key figures in bothbusinesses was Ken Elphick, known toauthorities after being jailed for two and a halfyears for defrauding the NSW Rugby Union.Result. In September 2002, the Supreme Courtfined Elphick $22,000. The other director ofAdrema, Stewart Bradley Cahn, was fined $3,000.Both were ordered to pay compensation totalling$140,391.00 plus costs and were ordered not to carryon business as a travel agent.

Australian Roll of Honour Publications

This vanity publisher operates from NewZealand but previously used a Sydney PO boxand a Sydney telephone number in contactswith prospective customers (Australia wide).Complaints relate to accepting payment inadvance and then failing to deliver thepublications within the promised timeframe or

...this is the first time

an Australian Court

has ordered the

actual destruction of

scam mail.


contact address. A Substantiation Notice wasissued for Demko to justify the various healthbenefits and other properties claimed for thepen. Result. Demko and the company haveagreed to cease promoting and selling theproduct at present. They will also removevarious claims from the brochure.

Motor dealersThe Office of Fair Trading regularly inspects

the premises and records of licensed motor

dealers to ensure they comply with the

requirements of the Motor Dealers Act. The

Statewide program examines areas such as:

consignment sale transactions; supply of

roadworthiness certificates; correct keeping

of prescribed records; odometer interference

and the display of vehicles for sale off

licensed premises.

In 2002 – 2003, the program inspected 133

licensed motor dealers in the Sydney

metropolitan area. It particularly targeted auto-

dismantlers to ensure that proper records are

kept, thus minimising the potential for dealing

in stolen vehicles and parts. The program has

resulted in prosecution and disciplinary

action against a number of dealers, including

suspension and cancellation of licences.

LLRAC Pty Ltd t/as Campsie Intersection

This case involved massive odometerinterference by the company and its director,Elias Boutros. Odometers on 21 cars werewound back by 1.46 million kms. Result. Thedealer’s licence was suspended in October 2001and legal proceedings were commenced. Thecompany subsequently ceased trading. InSeptember 2002, it was ordered to pay over$109,000 in fines, costs and compensation toconsumers. The dealer’s licence has beencancelled and Elias Boutros has beendisqualified for life.

Strike Force Worth

Strike Force Worth was a joint operation withthe NSW Police Service in August 2002,investigating a major car re-birthing andproperty theft racket. Result. Fair Tradingsuspended the licences of two motor dealersand six repairers. Five licensees appealed theirsuspensions to the Administrative DecisionsTribunal, which affirmed four of thesuspensions. Four of the licensees havesurrendered their licences.

John Joseph Byrne

In March 2003 Byrne was convicted for falselyrepresenting an odometer reading, and forfailing to disclose he was a licensed motordealer when he sold a vehicle privately. Result.

Fines and costs totalled over $1,600.

within a reasonable period. Its principal isAlister Taylor. Result. In December 2002, aletter from the Commissioner for Fair Tradingwas published in the official newsletter of theOrder of Australia Association, advising allaward recipients to be wary of approaches from

Alister Taylor. Fair Trading has set up a national

complaints register and is continuing to write

to recent award recipients, warning them

against dealing with Taylor. Supreme Court

proceedings have been commenced, seeking

orders to restrain Taylor’s business conduct

and obtain refunds for affected consumers.

Bassem Dodar and AAA Complete Electronic

repairs

The Minister for Fair Trading has previouslynamed Bassem Dodar as an habitual unfairtrader. The trader fails to return electricalappliances submitted for repair and fails toprovide warranty on repaired items. Result.

Fair Trading has obtained interim Supreme

Court injunctions against Dodar and associates

to restrain this business conduct in NSW.

Proceedings for permanent injunctions are

continuing.

Questionable advertising

Fair Trading has also been targeting particularlyquestionable advertising and promotionalpractices in relation to certain products such asget rich quick schemes, work from homescams, medical claims, and “m-commerce” viaSMS text messages. These are some of themore notable cases.

Quarry House International Pty Ltd

The company promotes and sells a healthapparatus, “Dr Levine’s Magnetic Power KneeStrap”. It claims that this provides fast relief forsufferers of occasional and chronic knee pain,and indicates that thousands of doctors andother health professionals in Europe and theUSA use it to promote pain relief and rapidrecovery for their patients. The company wasissued with a Substantiation Notice to justifyits claims about the product’s health benefitsand its use by health professionals. Result. Thecompany has agreed to remove all thequestionable health claims references in theiradvertising.

Health-Tec Australia

Jason Demko is the sole director of DentalWarehouse Pty Ltd, trading as Health-TecAustralia, a Victorian-registered business name.The business marketed a product described as a“Miracle Pen to Cure Pain” and a“transcutaneous nerve stimulation device”. Thepromotional brochure identified a NSW

The dealer’s

licence has been

cancelled and Elias

Boutros has been

disqualified for life.


Nippon Sydney International Pty Ltd

This Cabramatta business importedsecondhand engines, gearboxes and panels, aspartly dismantled vehicles from Japan, and thensold them to the public. Result. The companywas penalised $4,659 in fines and costs forfailing to hold an auto-dismantlers licenceunder the Motor Dealers Act.

Real estateThe focus during 2002 – 2003 was on

enforcing provisions in the legislation which

ensure that agents are always in effective

control of their agency, particularly relating to

staff and procedures involved in the handling

of trust money. The new Property, Stock and

Business Agents Act 2002 which

commences in 2003 enhances and

promotes the agent’s responsibilities in this

regard. Many of the disciplinary matters dealt

with during the year stemmed from

dereliction of these important responsibilities.

Joseph Kok Hoong Yang (also known as

Jackie Young)

Yang’s licence was cancelled for 5 years inNovember 2000 when the Licensing Courtfound he had misappropriated funds from atrust account. Fair Trading became aware inJuly 2001 that Joseph Yang was effectively incontrol of N.E.W.S. Property Group Pty Ltdand continuing to trade while disqualified.Following intervention by Fair Trading, MrYang gave the Supreme Court undertakings thathe would stop his involvement in the realestate industry. In May 2002 Yang was found tobe operating as the Accounts Manager forTongsing Properties Pty Ltd, trading as StarEastProperties in Maroubra. Result. In August 2002the Supreme Court found Yang guilty of twocounts of contempt of court and sentenced himto nine months jail.

Port Macquarie Hastings Rural Sales Pty Ltd

A complaint was received that Port MacquarieHastings Rural Sales P/L had been sellingbusinesses without being appropriatelylicensed. Result. The company and onedirector, Stuart Morton, were convicted andfined for unlicensed conduct.

Jason Lee & Yule Properties Pty Ltd (in

liquidation) trading as Richardson & Wrench

Campsie

The company had a history of late bankings andtrust account deficiencies. Result. The

Commissioner suspended the licence of JasonLee in November 2002. Subsequently, theLicensing Court permanently disqualifiedJason Lee and Yule Properties.

Retirement Villages andResidential ParksThis compliance program concentrated on

ensuring the proper implementation of the

2001 retirement villages legislation. Initial

industry education and information initiatives

were followed by planned inspection

programs and compliance action to target

identified risk areas, and resolve general

complaints. This focus will be continued in

2003-2004 - concentrating on those

operators who continually fail to comply with

their obligations.

Woolcott Court Retirement Village

After Woolcott Village P/L became insolvent,the Commissioner obtained Supreme Courtorders to appoint an administrator in October2001. Eight of the eleven residents haveregistered leases and are covered by theprovisions of the Retirement Villages Act 1999. Theremaining three residents have unregisteredleases which are the subject of mortgages.Result. It had been hoped that a purchaser forthe village as an on-going concern would havebeen found. Fair Trading is examining a rangeof options to resolve the difficult situation forthe residents.

Grevillea Court Retirement Village

An investigation was undertaken followingdifficulties with the village’s operation,including failure to supply essential services toresidents. Result. The Commissionersuccessfully applied to the Supreme Court for

appointment of an administrator. As at the end

of August 2003, negotiations with theadministrator were nearing completion toensure the continued financial viability of thevillage for the benefit of residents.

Vasey Housing Association NSW

Vasey operates five retirement villages in NSW.It contested Fair Trading’s authority to requirethe production of books and records during aninvestigation into the actions of the operator.Result. In September 2002 the NSW Court ofAppeal clarified the principles which apply toinvestigator notices issued under the RetirementVillages Act.

...the Supreme Court

found Yang guilty of

two counts of contempt

of court and sentenced

him to nine months jail.


Christmas product survey

Fair Trading has conducted a pre-Christmasproduct survey for more than 20 years. The2002 survey was conducted in November andDecember, covering a total of 717 stores inmetropolitan Sydney (390 stores) and NSWcountry centres (327 stores). Outlets inspectedincluded major retailers, cheaper discountvariety stores, novelty stores and electricalretailers.

The survey targeted general consumer productsand electrical articles, particularly thetraditional Christmas articles such as children’stoys, Christmas candleholders and decorations,Santa bags, Christmas tree lights, and beanbags.Approximately 14,000 individual products wereassessed for compliance with fair trading laws.

Although 98% of the products inspected wereconsidered safe, 79 products were purchasedfor further testing and 63 of those failed to meetsafety standards such as the ‘small parts’requirements and those relating to projectiletoys. Result. All products which failed to meetsafety standards were withdrawn from sale. 157traders were formally cautioned to complywith mandatory safety laws and 12 PenaltyNotices were issued. Briefs of evidence arebeing prepared recommending the prosecutionof another seven traders.

Electrical articles

It is an offence to sell unmarked andunapproved declared electrical articles, or non-declared articles that do not meet minimumsafety requirements, to the general public.During the last year over 400 shops and marketstalls selling electrical articles were inspected.As a result 162 suppliers were formallycautioned and some 17 companies have beenprosecuted and fined for selling unmarkeddeclared electrical accidents. During theperiod suppliers voluntary recalled 27 types ofelectrical articles because they were, or maybecome, unsafe to use.

Electrical accidents

Thirteen fatal electrical accidents werereported in New South Wales in 2002 - 2003.This compares with five fatalities in 2001 –2002 and eleven in 2000 – 2001. In NSW, thelong term incidence of electrical fatalities permillion of population, shows a continuouslydeclining trend for the years 1955 to 1996 andsince then has averaged one and a half fatalitiesper million of population.

Product safetyThis year the product safety area

concentrated on products that posed

dangers for children, in particular toys for

children under three years old, and projectile

toys. Several items were referred to the

Products Safety Committee, such as the Yo Yo

Balls, and baby bath supports. In the

electrical safety area, emphasis was on

certain items for the home – table and floor

lamps, furniture containing downlights and

electrical transformers, as well as battery

chargers sold with electrical scooters. Power

tools were also inspected, particularly at

market stalls and agricultural field days.

Toy safety meeting

The NSW Minister for Fair Trading openedthe meeting of the International StandardsOrganisation (ISO) Toy Safety Committee inSydney in December 2002. The ISOCommittee brings together toy safety expertsfrom a large number of countries and seeks toprovide an internationally standardised set ofsafety requirements and test methodologies forchildren’s toys. Member countries can thenreadily adopt these requirements and testcriteria. International standardised criteriaallow for the free flow of traded goods, whileensuring that safety is not compromised andthat unscrupulous manufacturers cannot shiftunsafe toys from one marketplace to another.

Several Fair Trading officers attended the ISOmeeting, and Australian delegates included twomembers of the NSW Products SafetyCommittee, which advises the Minister onsafety matters. Agenda items includeddiscussion of acoustic requirements,flammability, toxicity, projectile toys, andcorporate social responsibility. Fair Trading hada particular interest in the projectile toys issue.

Surveys and Inspection Programs

Royal Easter Show

In March 2002, Fair Trading officers inspectedthe contents of 249 showbags supplied by nineexhibitors to ensure that the contents compliedwith relevant product safety laws andguidelines. The annual pre-Show inspectionprogram is intended to detect potentiallydangerous products before the showbags arereleased to the public. There was a high level ofcompliance, although two products wereremoved as they failed testing.

All products which

failed to meet safety

standards were

withdrawn from sale.


marketed, and Austwide issued recalls. Theseproducts included eight projectile toys, aluggage strap, and a pair of sunglasses.

In May 2002, our officers met with companyrepresentatives to discuss Austwide’sobligations under the Fair Trading Act. Result. InJuly 2002, we accepted formal undertakingsfrom the company under s.73A of the FairTrading Act. The company agreed to undertakeappropriate testing of projectile toys, create andmaintain a compliance program consistent withthe relevant Australian Standard 3806 – 1998,conduct an independent audit of its complianceprogram annually from 2002-04 and provideFair Trading with a copy of the report.

Pull Back Action Target Game

In November 2002, we conducted urgentinquiries into the safety of this projectile toygame, following the death of a six year old boyin Wollongong who is believed to have chokedto death on one of the small darts from this toy.The supplier agreed to voluntarily withdrawthe product and issue a national recall.Inquiries indicated that this product had beenimplicated in two other deaths overseas. Result.

The Minister for Fair Trading issued a banningorder under the Fair Trading Act in November2002, covering the Pull Back Action TargetGame and similar toys with small suction-capprojectiles. On 28 February 2003, NSWgazetted an amended projectile toy regulation

Unsafe products.

Youngdown Pty Ltd, subsidiary of Millers Retail

Ltd

Youngdown operates the Go Lo DiscountVariety Stores and Crazy Prices Stores in NSW.In December 2001 and February 2002, thecompany consented to various Supreme Courtorders in relation to the supply of unsafe orincorrectly labelled products. Youngdown anda related company, Sungate Pty Limited, alsoagreed to pay $80,000 for Fair Trading’sinvestigation and legal costs. In November2002, Fair Trading commenced proceedingsagainst Youngdown for contempt of court inrelation to breaches of the consent orders fromFebruary 2002, and also sought injunctions toprevent further conduct in breach of theproduct safety requirements of the Fair TradingAct. Result. In July 2003 the company enterednew consent orders setting in place acompliance system, and the injunction wasdiscontinued. The company entered a guiltyplea and was convicted of contempt. The Courtaccepted the company’s apology.

Austwide Wholesalers Pty Ltd

In January 2001, Fair Trading cautionedAustwide about the supply of toys for youngchildren that did not comply with the FairTrading (Product Safety Standards) Regulation.Subsequent inspections indicated that certainnon-compliant items were still being

Product recalls 2002-2003

Product Reason

August 2002 – Toy Farm Animals Set Fails choking hazard tests in Australian Standard for toys.

September 2002 – Two Children’s Folding Chairs Scissor action in folding mechanism is a potential cutting hazard to

young children’s fingers.

November 2002 – Safe N Sound Royale & Filling from pad is easily removed resulting in a potential choking

Platinum Child Restraint pad hazard to young children.

November 2002 – Pull Back Action Target Game Child choked on small dart included in toy.

December 2002 – Darrel Lea Toy Clock with Confectionary Clock breaks easily. Fails choking hazard tests in Australian

Standard for toys.

December 2002 – Super Gun Projectile Toy Fails eye hazard tests in Australian Standard for toys.

January 2003 16 Piece Lap Art Set Padding contains polystyrene beads. Fails choking hazard tests

in Australian Standard for toys.

January 2003 – Toy Blackboard with Clock Fails choking hazard tests in Australian Standard for toys.

January 2003 – My Lovely Little Train Toy Fails choking hazard tests in Australian Standard for toys.

January 2003 – Candle Holder / Decoration Flammable

February 2003 - Musical Instrument Toy Fails choking hazard tests in Australian Standard for toys.

February 2003 – Super Power Trucks Fails choking hazard tests in Australian Standard for toys.

February 2003 - My First Puzzle Clock Fails choking hazard tests in Australian Standard for toys.

February 2003 – 4 Piece Infant Rattle Set Fails choking hazard tests in Australian Standard for toys.

February 2003 – Toy Monkey with Sounds Fails choking hazard tests in Australian Standard for toys.

March 2003 – Paper Lantern Cover Flammable

April 2003 – Spotlight Stores Christmas Candle Decoration Flammable

June 2003 – Liquid Filled Novelty Bathroom Accessories Contains kerosene. Hazardous to children.

June 2003 - Towelling Baby Bath Frame Does not carry warning labels as required by Fair Trading Act.


numerous items of pre-packaged meat atpacking houses and distribution points acrossNSW.

The results indicated significant areas ofconcern, as it appeared that many packers wereincluding the weight of the packaging materialin the stated weight of the meat, which is inbreach of NSW Trade Measurementlegislation. We identified seven packing houses,three in NSW and four in other States, thatwere packing short-weight cartons of meat.Result. All those businesses targeted haveentered enforceable undertakings whichrequire the establishment of complianceprograms and systems to ensure compliancewith the legislative requirements.

New Measurement and Technical Services

laboratory

The Office of Fair Trading administers the FairTrading Act 1987 and the Trade Measurement Act1989. Accurate trade measurement is offundamental importance to the wholecommunity as it is estimated that some $100billion worth of trade in NSW is conducted byreference to measurement, such as weight,volume, or length.

We operate a Standards Laboratory, whichprovides highly specialised services. It isresponsible for -

• maintenance of the State Primary Standardsof measurement

• reference standards of measurement withtechnical support for the Office and the trademeasurement inspection service

• reference standards of measurement to thetrade measurement service and repairindustry; and

• physical and legal traceability ofmeasurements to industry and thecommunity.

We routinely liaise with other governmentagencies, the National Standards Commission,the National Measurement Laboratory,industry and those in the community requiringphysical and legal traceability of measurement.

The Standards Laboratory had previously beenlocated at Belmore, but in recent years thebuilding developed serious deficiencies. Thesearch to secure more suitable accommodationwas successful when dedicated laboratory andoffice accommodation became available at theNational Measurement Laboratory site at WestLindfield. The NML is located within theCSIRO, Division of Telecommunications andIndustrial Physics (CTIP). The new premises

which updated the existing safety standards forprojectile toys and ensured that all projectiletoys like the Pull Back Action Target gamemeet minimum safety requirements in regardsto potential choking and eye injury hazards.

Secret Code toy

In June 2002, a 6 year-old boy died fromasphyxiation after he inhaled a part of this toy,which he had placed in his mouth. The toy hadbeen purchased approximately 2 years before.The Product Safety Regulation governingchildren’s toys requires that toys manufacturedor labelled as suitable for children under 3years must not contain parts that pose a chokingor inhalation hazard to those children. In thiscase, the toy was complex and not intended foryoung children. Certain small objects are aninherent feature of the game, and there werevarious warnings about its suitability for certainages. Result. Our inquiry showed that the toycomplied with all relevant parts of theRegulation and Toy Standard. The retailer,Crazy Clarks, immediately withdrew theproduct on being advised of the boy’s death,and subsequently issued a public recall.

Yo Yo Balls

Following reports of incidents both inAustralia and overseas involving the nearstrangulation of young children while using thegoods in play, the Products Safety Committeerecommended that a permanent ban be placedon Yo Yo Balls. A Prohibition Order under theFair Trading Act was introduced on 18 July 2003prohibiting the supply of this product.

Trade measurementThe trade measurement focus for 2002-2003

was on identifying and inspecting major

packing houses and importers of prepacked

goods. The aim was to ensure consumer

goods comply with trade measurement

requirements before they reach the retail

market. We also devoted considerable

resources to supervising the certification of

large capacity weighing instruments such as

belt conveyor weighers and road

weighbridges used in the transport, grain and

coal industries.

Pre-packaged carton meat

Fair Trading has an active trade measurementenforcement program to ensure that weighingand measuring instruments are accurate andpre-packed articles contain at least the amountstated on the package. Inquiries commencedfollowing complaints from meat retail outletsthat pre-packaged carton meat was short-weight. Our officers inspected and tested

The aim was to

ensure consumer goods

comply with trade

measurement

requirements before

they reach the retail

market.


were occupied on 1 April 2003. Being locatedwithin the National Measurement Laboratoryenables us to share the highly specialisedtechnical facilities, and to exchange skills andexpertise with our Commonwealthcounterparts.

Home buildingIn addition to compliance monitoring,

particular attention was given to restructuring

in preparation for the Home Building Service

becoming fully operational on 1 July 2003.

There will be renewed focus on dispute

resolution and compliance in the coming

year. As well as an Investigation Branch to

undertake compliance activities, two new

branches will be established - these being

Dispute Resolution & Inspections and

Regulatory Analysis & Assessment. The early

resolution of building disputes and the

analysis of the cause of consumer complaints

will receive high priority.

Malik Drif (A1 Renovations &

Constructions Pty Ltd)

Malik Drif is well known to Fair Trading andhas been the subject of previous disciplinaryproceedings. In 1991 his former company hadits licence cancelled for 5 years and Mr Drifhad a personal licence cancelled in 1993. As aresult of complaints received in 2000 regardingdefective and incomplete work, seekingpayments for work not completed and failingto satisfy orders of the former Fair TradingTribunal, Mr Drif ’s licence was suspended inMay 2001 pending the outcome of disciplinaryproceedings. Result. On 23 August 2002 MrDrif was permanently disqualified fromholding a licence or being a director of acompany that holds a licence. He was alsoordered to pay a penalty of $11,000.

Leonard Stephens

Following a complaint in 2001, Mr Stephenswas investigated for misrepresentation, failureto obtain home warranty insurance, taking anexcessive deposit, defective work and breach ofcontract. Although Mr Stephens hadcompleted only 70% of a contract, he hadconvinced his customer to pay almost 100% ofthe total contract amount. Result. Mr Stephenswas disqualified from holding a licence for fiveyears from 12 August 2002.

Peter and Steven Harb

A complaint was initially received concerningPeter and Steven Harb for not complying withan order of the Consumer, Trader and TenancyTribunal. The subsequent investigation alsodetermined there was no warranty insurance onthe work, materials used were not as specified

in the contract and defective work had beenperformed. It was also found that Peter Harbgave false information to the Tribunal. Result.

Peter Harb was disqualified from holding alicence for five years from 23 October 2002 andordered to pay a penalty of $5,000. Steven Harbwas disqualified from holding a licence for twoyears from 23 October 2002. Both matters arecurrently under appeal to the AdministrativeDecisions Tribunal.

Havenview Homes Pty Ltd and Patrick Furci

Havenview Homes were investigatedfollowing two complaints about work carriedout in 2000. The investigation revealeddefective work, breaches of contracts andfailure to obtain warranty insurance. Result. On5 December 2002 Havenview Homes Pty Ltdwas disqualified from holding a licence for twoyears. Patrick Furci (Director and nominatedsupervisor for the company) was disqualifiedfrom holding an authority (licence andqualified supervisor certificate) for two yearsand was ordered to pay a penalty of $4,000. Thematter is currently under appeal to theAdministrative Decisions Tribunal.

Charles Cutajar

Mr Cutajar was investigated following acomplaint about defective work on a majorrenovation to a home. The investigationconfirmed significant defective work, work notcarried out according to the plans, excessivedeposit taken and the incorrect form ofcontract used. Result. On 23 October August2002 Mr Cutajar was disqualified from holdinga licence for a period of five years. He was alsoordered to pay a penalty of $5,000.

Denis John Tombs

Following a 1998 conviction for unlicensedcontracting, Mr Tombs continued to operate aroof restoration business on the NSW CentralCoast without a licence. Following furtherinvestigations, Mr Tombs was again before theCourt on 27 September 2002. He was chargedand convicted on six counts: one of contractingto do residential building work without alicence, two of carrying out unlicensed workand three of making false representations aboutcontractor licenses. Result. Fines and coststotalled $24,360.

Foreverglaze Roofing Australia Pty Ltd

This company operated a roof restorationbusiness and targeted elderly consumers.Customers complained of poor, sub-standardwork, long delays in commencing work andfailure to finish work in many incidents.Defects often became evident within a veryshort time. The company acknowledged

The company has

been permanently

disqualified from

holding a licence...


Licensee Licence No. Disciplinary Action

Hough, Robert 34520 Disqualified for 2 years.

Yassa, Peter 21967s Disqualified for 5 years.

Tropea, F Q14431 Permanently disqualified and $8,000 penalty.

Drif, Malik 85396c Permanently disqualified and $11,000 penalty.

Cochrane, Andrew 106035c Disqualified for 1 year and $1,500 penalty.

A R Bryne Constructions Pty Ltd 32988 Restrictions imposed on the number and the value of

new contracts it may enter.

Byrne, Anthony Roger Q11741 Required to undertake further studies.

Lawand, C 22306s Disqualified for 10 years.

Champion Home (Sales) Pty Ltd 92732c Restrictions imposed relating to supervision of construction,

reporting requirements and $2,000 penalty.

Mather, Wayne Kenneth 107957c $2,000 penalty.

Stephens, Leonard 15700 Disqualified for 5 years.

Foreverglaze Roofing Pty Ltd 79630c Permanently disqualified.

Matlock Home Security Pty Ltd 100393c Permanently disqualified.

Symin, Anthony 93113c Disqualified for 5 years.

Munro, J 4921s Authority suspended.

Dunn, Raymond Q13262 Disqualified for 5 years and $7,500 penalty. Application for

Internal Review under consideration.

Kristic, J 126256c Disqualified for six months and $1,500 penalty.

Babula, Jerzy 73026c $500 penalty.

PoolTech Industries Pty Ltd 4871c Permanently disqualified.

Carroll, Wayne Don 31231 Disqualified for 5 years and $5,000 penalty.

Aves, Julio 89312c Disqualified for 2 years.

Harb, Peter 65651c Disqualified for 5 years and $5,000 penalty. Subject to

review by Administrative Decisions Tribunal.

Harb, Steven 93973c Disqualified for 2 years.

Havenveiw Homes Pty Ltd 97342c Disqualified for 2 years. Subject to review by Administrative

Decisions Tribunal.

Furci, Patrick 23655c Disqualified for 2 years and $4,000 penalty. Subject to

review by Administrative Decisions Tribunal.

Kyle, Victor 66203c Disqualified for 2 years.

Hutchings Electrical Pty Ltd EC40179 Permanently disqualified. Subject to review by

Administrative Decisions Tribunal.

Steven Owen Hutchings EA44989 Disqualified for 10 years and $5,000 penalty imposed.

Subject to review by Administrative Decisions Tribunal.

Denardo, Guiseppe 107729c Disqualified for 2 years.

Charles Cutajar 14446 Disqualified for 5 years and $5,000 penalty.

Lattouf, P 60742c $500 penalty.

Moussa, Naeyf 61697c Disqualified for 5 years.

Burke, Christopher R8469s $1,000 penalty.

P J Houston Pty Ltd 34561 $1,000 penalty.

A Mazzo & A D’Agostino 75851c $1,000 penalty.

Gavan & Shallala Homes Pty Ltd 31002 $250 penalty.

Raymond Goody Q11172 $250 penalty.

Khadir Rahimi 85603c Disqualified for 6 months and $1,000 penalty.

Ali Ghadiri 128189c $500 penalty.

Tony Phillip Tadrosse 124601c Permanently disqualified.

Better Building Group Pty Ltd 115927c Permanently disqualified.

Essam Issa 144007c Disqualified for 2 years.

J Clack Roofing Pty Ltd 118764c Permanently disqualified.

John Frederick Clack R50412 Disqualified for 5 years.

Terikihana Harawira R61918 & L12069 Permanently disqualified.

Home Building Disciplinary Action


A characteristic

feature of the Office

of Fair Trading is

regionalisation of

services.

warranty claims with customers butsubsequently failed to carry out any warrantywork. Result. The company has beenpermanently disqualified from holding alicence and disciplinary action is currentlypending against its sole director, John White.

Roof + Australia Pty Ltd - William Culleton &

John White

This unlicensed company operated a roofrestoration business and targeted elderlyconsumers. Its director, William Culleton andthe General Manager, John White were bothunlicensed. The company misrepresented thatit held a licence. While contracts showed alicence number of a legitimate licensedcontractor in many cases, the work was notperformed by that person but instead byunlicensed applicators. The company madeextensive use of telemarketing to obtain sales. Asalesperson would then attend consumers’premises and convince them that the productused was an exclusive and unique material witha 15 years warranty. This was the same tacticused by Foreverglaze Roofing Pty Ltd. Result.

The Office instructed the company to ceaseentering contracts in September 2002. Thecompany continued to trade and in February2003 an interim Supreme Court injunction wasobtained. Final orders were obtained in April2003 restraining Mr White from advertising,contracting or carrying out residential buildingwork for a period of five years.

Tony Phillip Tadrosse

Tony Tadrosse had previously been licensed todo concreting work. His licence expired on 25June 2002, but he continued to advertise andcarry out concreting and landscaping work inthe Sydney metropolitan area. He also assumedother names, some of which were those oflicensed contractors. Mr. Tadrosse typicallytook large amounts of cash as deposits from hiscustomers - $34,000 in one instance. His modusoperandi was to start work for the customer,dig up the yard, do a small amount oflandscaping and then never return to completethe job. Result. In April 2003 Tony PhillipTadrosse was permanently disqualified fromholding a licence. The investigation iscontinuing and prosecution for unlicensedactivities and other breaches of the Act mayfollow.

Regional compliance

servicesA characteristic feature of the Office of FairTrading is regionalisation of services. This notonly means local customer services, but itapplies to our compliance functions as well -with inspectors based in our offices aroundNew South Wales.

Each year we regularly target unsafe orunapproved consumer and electrical products,or those, which do not comply with requiredstandards. Weighing scales, pre-packaged goodsand petrol pumps are also checked for accuracy.Licensees such as builders and tradespeople,real estate agents, motor dealers, travel agents,pawnbrokers and second-hand dealers aremonitored to ensure they comply withappropriate legislation.

In 2002-2003 our compliance activities inregional NSW particularly focused on:

• inspecting owner builder sites for unlicensedbuilding work and failure to providecontracts and insurance

• inspecting heavy weighing equipment in themining, heavy manufacturing and grainexport industries

• inspecting food retailers to ensurecompliance with the requirement for the saleof meat by weight

• joint operations with the NSW PoliceService to ensure pawnbrokers and second-hand dealers were complying with legislation

• inspecting and monitoring travel agents

• a packaging survey for Easter products andshowbags at country fairs and shows

• a Christmas products survey to identifypossible dangerous items such as children’stoys and electrical goods that do not meetAustralian Standards

• monitoring major entertainment eventsbefore they commence to promote theEntertainment Industry Code of Practice - tominimise the likelihood of complaintsconcerning, ticket sales and refunds.

Co-operatives complianceThe Registry of Co-operatives & Associationsconducts an ongoing program of complianceand general inspections of co-operatives, co-operative housing societies and Starr-Bowkettsocieties.

During 2002 - 2003, the Registry completed thefollowing inspections:

• 9 co-operatives

• 8 co-operative housing society groups

• 27 desk audits of co-operatives

The inspections involve a detailed review ofoperations of the organisation to determine iflegislative requirements are being met. Reportsdetailing any exceptions identified andrecommendations to assist compliance aresubsequently forwarded to the organisation foraction.

As a result of an inspection of BankstownCommunity Services Co-operative Limitedand concerns about management and member


issues, an Inquirer was appointed to report onthe workings and financial condition of theco-operative. As a result of the Inquiry, theRegistrar appointed an administrator to theco-operative in December 2002.

Late cancellation of REVS interests

On 1 July 2002 the Registration of Interests in GoodsAmendment (Penalty Notices) Regulation 2002 wasenacted. Together with changes to theRegistration of Interests in Goods Act 1986, theseenable REVS to issue penalty notices to interestholders for the offence of failing to cancel aregistered interest within the required timeafter it ceases to exist.

As at 14 May 2003, only two Penalty notices hadbeen issued as the majority of offencesinvestigated occurred prior to the enactment ofthe Penalty Notice Regulation on 1 July 2002.However, on each occasion where a ‘latecancellation of interest’ complaint has beeninvestigated, REVS has been able to ensure theprompt removal of the interest, thus assistingthe buyer and seller of the vehicle. Offendinginterest holders were also issued with a PenaltyNotice warning letter.

Licensing, registration

and certificationThe Government’s On-Line Licensing Project

will be the central theme of OFT’s licensing

activities over the next several years. Phase

One, which provided on-line availability of

selected renewal services, was introduced

early in 2003. The good customer uptake

rate underscores the objective of making as

many Government services as possible

available to the community on-line. Other

developments during the year involved a

range of measures to extract maximum

community benefit from the home building

licensing regime.

On-Line Licensing ProjectIn response to the NSW Government’scommitment to provide all appropriateservices on-line, a whole of governmentproject with multi-agency focus has beencommissioned. Fair Trading is the pilot agencyfor this project which is being coordinated bythe Department of Commerce.

Licensing Activity

Licence Type New 01-02 New 02-03 Currently Registered

Motor Dealers 550 426 4,007

Travel Agents 127 120 1,465

Pawnbrokers & Second-hand Dealers 298 249 1,253

Public Weighbridge 14 9 83

Trade Measurement Services 17 19 187

Property, Stock, & Business Agents Licences 1,519 1,911 25,393

Real Estate Certificates 4,257 5,090 13,671

Valuers 153 143 4,935 *

Conveyancers 87 99 423

Building 11,583 13,973 162,043

* This figure includes 1,717 non-practising Valuers

Business Names Register Total

Little movement in total business names registered was recorded in 2002-2003.


The initial phase of the project wascommissioned incrementally between Januaryand April 2003. Our customers can now usethis system to lodge business name andbusiness license renewals and changes ofparticulars. The customer take up rates areevidence of the need for this service channelwith already 25% of business name renewalsand changes of particulars as well as 9% ofbusiness licences being lodged on-line by theend of June 2003.

Although we have been the only licensingagency involved in the first phase, Fair Tradingwill be one of four key agencies to lead thesecond phase of the project which will see themigration of existing licensing systems to thenew Government Licensing System. It isanticipated the new system will be available in2004 - 2005.

Home Building Act reforms

Continuing professionaldevelopment for licenseesFrom 1 January 2004, it will be mandatory forbuilders and trade contractors to undertakecontinuing education and training to renewtheir licence. The initiative is designed toensure licensees maintain appropriate skilllevels. The Construction Industry TrainingAdvisory Board was commissioned to helpdevelop a model for the project which wasscheduled to be available in July 2003.

Financial soundness of licensees

A financial soundness requirement for theinitial granting and renewal of a licence is beingdeveloped. A draft model has been issued toindustry associations and insurers forconsultation. A final model andcommencement date will be determined aftercompletion of the Inquiry into the HomeWarranty Insurance Scheme. Thereintroduction of a financial soundness test forlicensing will, as argued by the CampbellInquiry, prevent financially marginal buildersfrom obtaining a licence. However, it will notlimit the right of an insurer to insist onadditional financial resources or guaranteesbased on its risk assessment of a particularbuilder or project.

Licensing of building consultants

The licensing of building consultants involvedin pre-purchase home inspections is expectedto commence on 1 January 2004. The move isdesigned to ensure they have appropriatequalifications and that their services areprovided in a professional and ethical manner.A reference group has been established and adiscussion paper has been prepared.

Information for consumers

and tradersProviding information to consumers and

traders is the essential complement to our

policy framework and our compliance and

enforcement roles. This core business helps

the people of NSW understand our fair

trading laws and how they operate. It

accounts for approximately half our staff and

a similar proportion of financial and related

resources. Over the past year we provided

this service on at least 3 million occasions –

by phone and over the counter, through our

Web site and through checks on the Register

of Encumbered Vehicles.

On more than a million other occasions we

assisted customers with licence and

business name related transactions as well

as rental bond lodgements and refunds.

We measurably reach a significant

proportion of the NSW community through

these means alone. But, our information uses

other avenues as well to reach intended

targets. We produce resources for school

students and the range was extended during

the year. People living in regional and

remote areas are exposed to advertising

campaigns, outreach services in numerous

towns and regular newspaper columns.

Ethnic communities benefit from a growing

range of translated information – increasingly

spread through partnerships with ethnic

communities. Business people take

advantage of a broad range of publications

designed specifically for trading fairly in

New South Wales.

A variety of new information products and

initiatives were introduced during the year.

But, with home building regulatory reform

taking centre stage of OFT policy

development, a strong home building focus

for our information production and

distribution efforts was a natural outcome.

Home building informationThe Government’s home building reforminitiatives led to a range of new or upgradedpublications and guides. Our consumerfriendly home building contracts were updatedand a new home building Web site waslaunched.

Over the past year we

provided this service on

at least 3 million

occasions...


Fair trading complaints are demand driven. However, complaint numbers

are expected to rise over the coming year as a result of the transfer of the

building conciliation role from the independent Consumer, Trader and

Tenancy Tribunal to the Office of Fair Trading’s Customer Services Division

The movement in Fair Trading phone and counter enquiries over the last five

years represents a relative difference between 1998-1999 and 2002-2003 of

25,753 fewer contacts. However, it is interesting to compare this with the

increase in the number of people using the Office of Fair Trading Web site to

find information. As the graph opposite shows, visitor sessions are rising

solidly – up from 269,000* in the first half of 2002 to 808,000 in the last

financial year. It is natural to see some movement of numbers between

traditional and newer customer contact methods. When comparing the morethan 800,000 Web site visitor sessions to the recent changes in traditional

contacts, it is clear that the Web site is extending Fair Trading’s customer

reach and supplementing the traditional services provided. Visitor sessions

on the Web site are anticipated to continue increasing as the community

further adopts the technology and as Fair Trading continues to enhance the

information and services available through the site. The more than 0.70 M

Fair Trading enquiries received in 2002-2003 demonstrates that there

continues to be extremely high demand for phone and counter services.

*Web site statistical software introduced mid January 2002

Fair Trading Complaints

Fair Trading Enquiries

Web site visitor sessions


• Our booklet: Buying into a Strata Scheme, wasrevised to include a chapter on off-the-plansales. The amended booklet became availablein February 2003.

• A New Home Log Book that provides newhomeowners with advice on maintenanceprovisions and obligations was produced andbecame available in February 2003.

• A consumer brochure explaining the disputeresolution process and insurancerequirements, which will be mandatory forbuilders to give consumers on the signing ofthe contract, was developed. It is scheduledto be available when new home buildingcontract clauses begin to apply fromSeptember 2003.

• A standard guide on customer service forbuilders was introduced in February 2003.

• A guide on standards and tolerances willdefine standards of building work and helpbuilders and consumers agree on what isacceptable construction. Based on a Victorianpublication, the guide was released on 30June 2003.

• OFT’s two building contracts have beenupdated to comply with amendments tolegislation covering contractual fairness,requirements for a check-list and signingpage and the introduction of cooling-offclauses.

• A new home building Web site wasdeveloped and launched on 17 February 2003.Consumers can access information onbuilding and renovating, buying off the plan,post-construction maintenance, contracts andinsurance. Builders and tradespeople canaccess information on insurance, licensing,dispute resolution and customer service.Builders and tradespeople can also registerfor e-mail updates of legislation changes andcurrent issues. Another significant feature is asearch facility that allows consumers tocheck the record of all licensees. By the endof the financial year, over 164,094 enquirieshad been made to the Web site which isaccessible at: www.fairtrading.nsw.gov.au/building. 6,785 enquiries were also made tothe Web site’s licence check facility.

• From 1 July 2002 all applicants for OwnerBuilder Permits where the value of the workexceeds $12,000 are required to complete anapproved Owner Builder course. Coursesare run by a number of training providers.

Consumer Week and awardsOur annual Consumer Week focuses publicattention on consumer issues through a rangeof community events and a media campaigndirected at key press, television and radiooutlets including ethnic media.

Consumer Week in 2002 was held from 24 to 29November. The campaign cornerstone was thelaunch of a major new initiative - the ScamSmart Program and the Seniors’ Infomercial.We conducted key events in Sydney, theCentral Coast, and Tamworth including theopening of the Tamworth Fair Trading Centre.

We worked with a number of key stakeholdersincluding NSW Police and the Department ofAgeing, Disability and Home Care to promotethe Scam Smart Program throughout the week.

The NSW Consumer Protection Awards wereonce again a highlight of Consumer Week. TheAwards Program honours the manycontributions made by individuals, communityorganisations, business, industry associationsand the media in advancing consumerprotection in the community. In 2002, thenumber of categories was broadened tospecifically include consumer advocates forseniors, ethnic and indigenous communities.

Another regular event in Consumer Week isthe Ethnic Media and Community LeadersConference. The 2002 Conference was wellattended and extensively covered in the ethnicmedia.

Our promotional activities across the Stateensured that Consumer Week and the NSWConsumer Protection Awards were coveredextensively in the regional media.

Scam SmartScams are internationally recognised as a meansof depriving people of their money andproviding little or nothing in return. Whilescams affect the whole community, weidentified older people as a particularlyvulnerable target for this type of fraudulentactivity.

To raise older Australians’ awareness of scamsand to provide them with practical resources toavoid becoming the victims of scam artists, wedeveloped Scam Smart, an education programthat encourages seniors to “Beat the Cheats!”

With the endorsement of NSW Police and theDepartment of Ageing, Disability and HomeCare, we produced printed information in kitform, including checklists, brochureinformation, wallet reminders and a “ScamSmart House” sticker that warned potential conartists that the occupant(s) of the house werescam smart. The Scam Smart information wasalso translated into seven communitylanguages.

...it will be mandatory

for builders and trade

contractors to undertake

continuing education

and training to renew

their licence.


Television advertising for

seniorsTo help spread the Scam Smart campaign message,we produced a three-minute televisioninfomercial. This was aired across all regions ofNew South Wales for two weeks in Novemberto coincide with Consumer Week 2002.

The television commercial emphasised the factthat scams are crimes, and that they should bereported. (The under-reporting of scams byembarrassed older people was identified as amajor stumbling block to stopping scamartists.) The commercial featured the ScamSmart Kit as well as our popular Seniors’ Guide,which also contains anti-scam information.

During the two weeks the commercial was onair, our Fair Trading Centres across the Statereceived hundreds of requests for the ScamSmart Kit. As a result of this promotion andothers, over 12,000 kits were distributed by theend of 2002.

School ProjectsFollowing a number of requests from highschool students and teachers for moreinformation about our services and thedevelopment of consumer protection in NewSouth Wales, we created a new section on ourweb site - School Projects.

School Projects traces the history of consumerprotection since early colonial days, completewith historical photographs from the Mitchelllibrary and from the archives of the AustralianRetailers Association. In addition, School Projectscontains a student’s guide to consumer rights,and provides the facts about many commonconsumer misconceptions. One particulararticle looks at how our work affects theeveryday life of all people living in New SouthWales.

Property ConferenceThe Australasian Real Property RegulatorsConference was held over 2 days in October2002. Operating under a theme: The way ahead, itwas opened by the Minister for Fair Tradingand was well attended by representatives fromall States and Territories as well as by delegatesfrom New Zealand, the United States andSouth Africa. Besides government speakers,presentations were also made byrepresentatives from the Real Estate Institute ofAustralia and the property industry.

The business focussed conference resulted in akey outcomes paper highlighting issues andpriorities in the areas of consumer protection;industry education; continuing professionaldevelopment; Internet marketing andcompliance. Presentations from two overseas

jurisdictions were particularly useful as theyprovided insight into other options forindustry regulation. South Australia will hostthe next conference in October 2003.

Ethnic Tenancy EducationIn our Ethnic Tenancy Education Program wetrialed an alternative and innovative approach toeducating ethnic tenants about their key rightsand responsibilities. Between August andOctober 2002 we piloted a new tenancybrochure in four new-arrival languages -Bosnian, Dari, Indonesian and Tamil - and twoestablished languages - Chinese and Vietnamese.

Each language version of the brochure wascustomised with the contact details of ethnospecific and multicultural communityorganisations that participated in the programby providing information and referral totenants, distributing the pilot brochure andproviding feedback to Fair Trading.

Over 17,000 copies of the brochure weredistributed through community organisations,real estate agents, housing associations and FairTrading Centres.

The results of the pilot showed that ourpartnership with ethnic communityorganisations was vital for the effective deliveryof this information to people from a non-English speaking background and new arrivalsin particular.

Co-operatives & Associations

informationCommunity language versions of twoestablished publications are now available.Setting up an incorporated association and A guide to cooperatives are now available in Arabic, Italian,Spanish and Vietnamese.

Access to Registry information, through theWeb site, has been improved by the addition ofan e-mail address for inquiries and more directaccess for viewing and down loading approvedforms for incorporated associations.

Community schemes

publicationsCommunity schemes cover a range ofrecreational facilities as well as ruralsubdivisions with irrigation channels as“association” property, and groups of dwellingswithin particular urban precincts orneighbourhoods. In August 2002 we producedand distributed a community schemes bookletto help people understand their rights andobligations under “community schemes”.

The Living in a Community Scheme publicationexamines every aspect of the operations of

...we developed Scam

Smart, an education

program that

encourages seniors to

“Beat the Cheats!”


community, precinct and neighbourhoodschemes and highlights the importantdifferences between it and the parallel model -strata schemes. It is a valuable resource foranyone living, or thinking of living under thesearrangements.

Good Business MattersTo improve small businesses’ understanding oftheir responsibilities to consumers as well asboost their bottom line in the process, wedeveloped a new information resource calledthe Good Business Matters kit. The kit allows fortailored information packages to suit specificbusiness audiences. Designed primarily fordistribution through our Fair Trading Centres,the ‘pick and pack’ system draws on a range ofnew fact sheets - each covering specific topicsor industries. The fact sheets explain theimpact of consumer protection laws onbusiness operations, but also highlight waysbusiness people can use ethical tradingpractices to cement customer relationships andso bolster profits.

The kit also alerts small business to thedishonest activities of unscrupulous operatorswho prey on genuine businesses. It providesvaluable tips on ways to beat these cheats. Thekit is essential reading for small businessoperators who want to ensure their enterprisescontinue to prosper in a competitivecommercial environment.

Buying a carBuying a car can be an emotional experience.Sometimes the emotion can blind buyers to thefiner points of their purchase, such as spottingmechanical faults, checking for outstandingdebts on a vehicle or recognising the pitfalls ina contract. To provide prospective buyers withpractical information about all the aspects ofbuying a car we developed The Car BuyersHandbook. This resource covers topics such aswhere to buy the right car, arranging finance,mechanical and other checks, vehicleregistration, maintenance and repair. TheHandbook was compiled with the help of theRoads and Traffic Authority, the Motor TradersAssociation, the NRMA, the Motor AccidentsAuthority and the Motor Vehicle RepairIndustry Association. The participation of theseagencies will also help with the distribution ofthe publication, ensuring a broader reach to itsaudience.

REVS informationIn addition to its ongoing core objective ofproviding details of motor vehicleencumbrances, REVS looks for otheropportunities to enhance the level ofprotection available to the public and industry.One major initiative currently underway is theproposed linking of the REVS database to theNational Exchange of Vehicle & DriverInformation System (NEVDIS). This willenable all REVS searches to be verified againstNSW and national vehicle registrationinformation including stolen and written-offvehicle register information maintained onNEVDIS. In a collaborative effort with theRoads and Traffic Authority (RTA), furtherenhancement to the existing communicationlink between the REVS and the RTA’scomputer systems is currently in progress tofacilitate REVS’ proposed access to NEVDISvia the RTA’s DRIVES24 gateway. Theprovision of national information to industryand consumers through REVS is a valuable andeffective mechanism in the NSWGovernment’s fight to prevent and detectmotor vehicle theft. It will have a significantimpact on curbing the movement of stolenvehicles for the purpose of rebirthing.

Think Smart – Ethnic EducationOur Think Smart program uses a model ofintegrated service delivery to increaseawareness of consumer issues among non-English speaking members of our community.It’s a long-term commitment to ethniccommunities and includes deliveringcommunity education through formalcommunity and media partnerships,community leaders and media conferences,translated publications and improved educationaccess.

In 2002, we began providing training to ourcommunity partners and involved a number ofthem in a project to create awareness of scamsin their community. Our partners, togetherwith other ethnic organisations, alsoparticipated in our Ethnic Tenancy Pilot. Thistested alternative approaches to educatingethnic tenants about their key rights andresponsibilities.

We launched our “ethnic web” in August 2002at our Ethnic Media and Community LeadersConference. The ethnic web is accessible from

The kit also alerts

small business to the

dishonest activities of

unscrupulous operators

who prey on genuine

businesses.

REVS - vital statistics 2002-2003

REVS checks 1,212,5350

Potential savings to clients* $15.95M

Finance industry commitments registered on REVS # $6.55 B

Total encumbrances held on REVS 2.89M

* Based on finance industry estimates that 0.6% of encumbrances result in bad debt.

# Based on total financial encumbrances registered during 2002-2003 multiplied by average loan.


our Web site home page and provides keyconsumer information on a range of topics inArabic, Chinese, Greek, Italian, Spanish,Vietnamese, and Macedonian.

We continued to produce translatedpublications in up to 23 languages. All of theseare available electronically from the Web site.The most popular is the Renting Guide, which isavailable in 18 languages, including English.

Think Smart was a finalist in the 2002,Community Relations CommissionMulticultural Marketing Awards.

Regional servicesA new Fair Trading Centre (FTC) at Bathurstwas opened in July 2003 to bring to 17 thenumber of regional FTCs ensuring peopleliving across the State receive fair access to ourservices. As well, some of our services areavailable from Government Access Centres andthrough other agency arrangements.

Besides providing counter and phone servicesfrom FTCs, our regional staff regularly visitlocal and remote communities to helpindividual consumers, traders, communitiesand business organisations understand andbenefit from NSW’s fair trading laws. In 2002 –2003 a range of these activities were conductedthroughout NSW.

Government Access Centre and other agency locations

Ashford Eden Menindee Rylstone

Balranald Finley Merriwa Scone

Barham Forbes Moama Temora

Boggabilla Forster Moree Tenterfield

Bombala Gilgandra Moruya Tumbarumba

Boorowa Glen Innes Moulamein Ulladulla

Bourke Grenfell Mt Druitt (urban GAC) Walcha

Brewarrina Gundagai Mungindi Walgett

Cobar Hay Murrurundi Warialda

Condobolin Hillston Nambucca Heads Warren

Cooma Holbrook Narooma Wentworth

Coonabarabran Inverell Narrabri West Wyalong

Coonamble Jindabyne Narrandera Wilcannia

Crookwell Kyogle Nyngan Woodenbong

Culcairn Lake Cargeligo Oberon

Dorrigo Lockhart Peak Hill

Dunedoo Maclean Quirindi

Fair Trading Centre locations

Albury Armidale Bathurst Blacktown

Broken Hill Coffs Harbour Dubbo Gosford

Grafton Hurstville Lismore Liverpool

Newcastle Orange Parramatta Penrith

Port Macquarie Queanbeyan Sydney Tamworth

Tweed Heads Wagga Wagga Wollongong

For seniors, we conducted numerous seminarsto mark Seniors Week, assisted with thepresentation of the Premier’s Forum on Agingprogram throughout NSW and made specialdistributions of our seniors publications suchas The Seniors Guide and the Scam Smart kit.

For young people, we promoted Money Stuff (aguide to buying mobile phones, cars & rentinga home) at schools and colleges. At theUniversity of New England we continued withan ongoing program of informing foreignstudents of their consumer rights.

To assist businesses we presented seminars onfair trading and continued to liaise with localnewspapers to ensure good advertisingstandards by distributing our Fair TradingAdvertising Checklist. In the Hunter weconducted a seminar “Women inConstruction”. This was directed at spouses oftradespeople in the building industry and hasled to the creation of a network supporting thebuilding industry’s ‘silent’ partners.

To ensure Aboriginal consumers in regionaland remote areas of NSW have access to ourservices, our network of 12 AboriginalCustomer Service Officers continues toconduct regular visits to Aboriginalcommunities, land councils, support centresand related indigenous contacts points. We


distribute culturally appropriate informationmaterials and we establish partnerships withother agencies to develop and deliver multi-agency initiatives targeting the needs ofAboriginal communities.

Local media was a key outlet for our messages.We distributed pre-packaged ‘Your Rights’columns to regional newspapers andcommunity organisations, who publish themaround the State on a regular basis. We alsoparticipated in regular free-to-air broadcastingof consumer protection messages oncommunity radio stations.

Rental Bonds & TenancyDuring the financial year a total of 295,349 newrental bonds were lodged, an increase of 1.0%over the previous year. By contrast, thenumber of bonds refunded declined for onlythe second time on record, with 275,965 bondsrefunded through 395,885 individual payments.

This represented a decrease of 3.6% in thenumber of refunds compared to last year. Thereturn to a wider gap between the numbers oflodgements and refunds, in contrast to 2001 -2002 where high property vacancy rates werethe norm, resulted in a 3.6% increase in thenumber of bonds held in trust at year’s end –551,777 bonds valued at $529.5 million.

Customers continued to prefer convenientelectronic services to the more traditional face-to-face services. During the year tenants,landlords and real estate agents submitted over90 % of all claims electronically. By contrast,5% of claims came through the post and only3.8% sought a refund over the counter, downfrom 4.3% in 2001 - 2002 and 7% in 2000 - 2001.The proportion of customers requesting theirrefund be credited directly to their bankaccount increased from 34% in 2001 - 2002 to38.4% this year. The Rental Bond InternetService (RBIS), which allows NSW property

Rental Bonds - number processed and held in trust

Rental Bond and Tenancy enquiries processed


managers to transact their rental bond businesson-line, 24 hours a day, continues to grow inpopularity. Over 800 real estate agencies wereconnected to RBIS at 30 June 2003. Theproportion of claims submitted via RBIS grewby 45% when compared with the previous year.

During the last year, the number of customersassisted through the traditional local andfreecall 1800 telephone services declined by6.4%. The number of tenancy inquiriesdecreased only slightly, however the number ofcustomers seeking rental bond informationover the telephone declined by 9.1% as aconsequence of the growing number of realestate agencies accessing the convenient rentalbond information available over RBIS.Property managers used the Service to make37,797 inquiries and access a range of financialand other reports. Overall there were 175,192visits to the site. In recent years, our call centrestaff have struggled to keep up with ever-increasing volumes of callers. The advent ofRBIS has lessened this pressure - allowingofficers to concentrate on providing a higherquality of service to customers with morecomplex tenancy issues.

Strata Schemes & MediationFair Trading continues to achieve considerablesuccess in resolving strata scheme complaintsin NSW. The increasing number of peopleliving in strata situations, particularly inmetropolitan areas, ensures that the incidenceof disputes about the management of strataschemes continues to rise. In 2002 - 2003 FairTrading finalised 922 applications for mediation- up 6 on the previous year. However, ourmediation services were able to resolve 77% ofthese. Early mediation intervention such asthis reduces the case load on the Consumer,Trader and Tenancy Tribunal and represents aconsiderable saving to the Government andconsumers.

In 2002 - 2003, Fair Trading provided 41,691owners, occupiers, owners’ corporations,associations, managing agents and the publicwith information about the Strata SchemesManagement Act, the Community Land ManagementAct, the services provided by the Office anddispute resolution processes. This is a demanddriven service. However, the 8% decrease canalso be attributed to the increased availability ofclient information and publications on theOFT Web site.

Strata Schemes enquiries


Objective three:

Our third key objective acknowledges that we are

accountable for the use of community resources. We aim

to provide customer-focused services that align with the

Government’s social justice objectives and which are

designed and delivered in the most economical, efficient

and cost-effective way.

Accountable use, in all the

Office’s activities, of public

resources


Access & EquityAccess and equity policies and projects

have been a central part of our work this

year. We have had an Access and Equity

Strategy that has outlined all our projects, as

well as specific plans for Aboriginal people,

ethnic affairs, disability issues and equal

employment opportunity, including the

Spokeswomen’s Program.

Our emphasis has been on ensuring all our

staff, particularly at the local level, provide

services to meet the diverse needs of our

community. This has included an extensive

range of publications in languages other

than English, partnerships with community

organisations, improving access to our

buildings and the employment of Aboriginal

staff to work with indigenous communities.

Aboriginal EmploymentStrategyThe Aboriginal Employment Strategy hasmaintained the percentage of Aboriginal staff atover 3% - against the government target of 2%.We are working towards maintaining theselevels by targeting more mainstream positions

in the future. We have had an increase inAboriginal staff progressing in their careerdevelopment and skills by taking higher dutyopportunities and secondment opportunitieswithin and outside the Office. A contributingfactor to this is the information and trainingreceived at the quarterly Network Meetingswhere staff from various divisions and branchesare invited to provide information about theirrole and the type of work they undertakewithin the organisation.

Highlights for 2002-2003

• Six new Aboriginal staff commenced full-time permanent employment with OFT withone of the positions being funded throughthe Elsa Dixon Program.

• Three Aboriginal employees gainedpromotions to full-time permanent positionswithin OFT - with one position also beingfunded through the Elsa Dixon Program.

• Three Aboriginal employees acted in highergraded positions for periods of six months ormore.

• Four new Aboriginal staff gained temporaryemployment with OFT.

• Three Aboriginal Network meetings tookplace during the year with one of themeetings incorporating the annual OFTAboriginal and Torres Strait Islander


Performance Information

Conference. The Conference focused on the‘Future direction of Aboriginal and TorresStrait Islander issues in NSW’. Guestspeakers included high profile communityand government representatives andMembers of Parliament.

• An Aboriginal officer received a Diploma inManagement (Government) aftersuccessfully completing the ManagementDevelopment Program conducted by thePremiers Department.

• Eleven Aboriginal Customer ServiceOfficers who service Aboriginal and TorresStrait Islander communities throughoutNSW successfully completed the ‘trainingfor groups’ component of the Certificate inAssessment and Workplace Training.

Disability Action PlanAs part of the review of our Disability ActionPlan, we are consulting with a wide range ofdisability groups. This will ensure the diverseneeds of people with disabilities are taken intoconsideration. We have improved access byincreasing our online information and services,adopting a system to provide information inaccessible formats, and providing TTYs(Telephone Typewriters for people who aredeaf or have a speech or hearing impairment) infive operational areas.

Employment equityWe continued to maintain a nearly 100%response rate to our EEO Survey of staff. Thisenabled us to develop appropriate strategiesaccording to the needs identified. We exceededmost of the government targets for percentagesof EEO group members. The policies onHarassment–Free Workplace and EEO werepromoted across the Office. We advertisedopportunities for scholarships, promotionalpositions, and sent out information onchildcare, vacation care and elder care on aregular basis to all staff. We maintain up to dateinformation on EEO, careers, training andemployment practices on the Office of FairTrading’s Intranet under the Access and EquityIcon, the Women’s Icon “E-Quality”, the OFTPolicies and Procedures Icon and the TrainingResources Icon. A Career Planning package anda Merit Selection Guide for Convenors andSelection Committee members have beenplaced on the Intranet for all staff.

We had four six-month placements under theMigrant Career Development Program forpeople from non-English speakingbackgrounds who had overseas skills orexperience that had not been recognised. In2003 we identified two positions foradvertising to be filled by job seekers or public

91% 89% 95% 94% ≥≥≥≥≥ 90%

69% 75% 80% 78% ≥≥≥≥≥ 75%

90% 90% 91% 91% ≥≥≥≥≥ 90%

98% 94% 97% 94% ≥≥≥≥≥ 90%

95% 91% 96% 94% ≥ ≥ ≥ ≥ ≥ 90%

Key outcomes/measures

Outcome: Customer-focused operations

Measure: level of customer satisfaction with:•overall quality of service

•waiting time for a service

•staff’s knowledge of subject

•politeness of service staff

•helpfulness of service staff

Interpretation/comment

The Office of Fair Trading conducted its fourth annual survey to independently test customer satisfaction with services to thepublic. The survey was conducted by Colmar-Brunton P/L. A group of 440 customers, randomly selected from those who hadrecently contacted us, were telephoned and asked to respond to a questionnaire. The figures presented in the above tableindicate percentage of customers satisfied or very satisfied.

Satisfaction levels with all aspects of customer service continue to he high and above the set target levels. The small changes ofresults this year compared to those of previous years are only apparent as such small changes cannot be accurately quantifieddue to limitations in the sample size.

For aspects of service which are under OFT’s control such as the overall quality of service, staff ’s knowledge of subject,politeness and helpfulness, the results continue to be high. The results for the waiting times, which depend on the demandlevels, continue to be lower than other aspects of customer service but above the set target level.

99-00 00-01 01-02 02-03 Target


sector staff who wish to gain experience in thearea in which they have overseas skills. We have82 staff who speak 28 different languages.

We continue to support our staff with adisability by having three Disability Networkmeetings per year. We recognised theInternational Day for People with Disabilitiesby inviting guest speakers on disability issueswho kept our staff up to date with currentadvancements in the area of disability. Wecontinue to maintain our policies on disabilityrecruitment and reasonable adjustmentavailable to all staff. We are developing aproposal for training in the area of disability aspart of our Diversity Training. One staffmember is an accredited Auslan speaker forcommunicating with customers who have ahearing disability.

We implemented a Flexible Working HoursAgreement and conducted a questionnaire onWork and Carer’s Responsibilities. Twopositions in Information Technology weretargeted as part of the Reskilling Women in thePublic Sector to improve the representation ofwomen in IT.

We supported members of the EEO groupsthrough sponsoring networks including theSpokeswomen’s Network, the Aboriginal andTorres Strait Islander Network and theDisability Network. These Networks meet ona regular basis to support and act as aconsultative mechanism on issues that effectstaff and customers and provide skillsdevelopment.

Our goals for 2003-2004 are to:

• use the results of staff focus groups to planfuture EEO activities

• continue building on the success of theAboriginal Employment Strategy

• plan EEO activities on the analysis of theresults from the EEO Focus Groups andquestionnaire on Work and Carer’sResponsibilities

• further develop the Spokeswomen’s Program

• maintain the high staff response rate to theEEO Survey

• support two work experience placements formigrants with overseas skills and experience

• conduct diversity training for staff anddevelop strategies for employing more staffwith a disability.

SpokeswomenOur Spokeswomen Program continues toflourish. At year’s end we had 10 electedspokeswomen representing our regions anddivisions who provide a range of informationand activities to support our female staff. Fivenew spokeswomen commenced during the

year. They were mentored by the outgoingspokeswomen and supported through training,teleconferences with our Women’s LiaisonOfficer and by attending the Spokeswomen’sPlanning Day and Spokeswomen’s annualConference.

The Planning Day was held on 30 April 2003. Atit, a Spokeswomen’s Strategic Plan for 2003-2004 and target activities for each electoratewere developed. Our previous Plan (2002-2003) has been used by the GovernmentSpokeswomen’s Management Committee as anexample of best practice for training newspokeswomen across the public sector.

We routinely provide information to supportour female staff through a number of mediums.These include:

• the Women’s Icon – a dedicated channel on theOFT computer network

• Working Women - a segment in OFT’sbimonthly staff newsletter

• publication resource centres maintained inseveral OFT offices and

• e-mail.

We celebrated International Women’s Day 2003by presenting two scholarships for women toattend the Springboard Women’s DevelopmentCourse and by conducting three half-dayWomen’s Conferences in regional andmetropolitan areas. The theme was Women andWork. A related initiative was development of aquestionnaire on Work and Carer’sResponsibilities.

Aboriginal Action PlanFair Trading has had an Aboriginal Action Planin place for the past four years. Our Aboriginaland non-Aboriginal staff have been activelyengaging Aboriginal communities. We haveachieved results and are starting to make a realdifference for Aboriginal consumers. But muchremains to be done.

In 2001 – 2002 we evaluated our original Plan.From this evaluation we have now developed anew Plan for 2003-2005. It has these sevenoverlapping initiatives.

• Regional Aboriginal Services Program. Thiswill provide regional activities such as,community outreach and liaison, communityeducation on general fair trading services anda gateway to more specialist OFT services.

• Education materials. This includes media andpromotional activities to increase awarenessof OFT services and to give usefulinformation in culturally appropriateformats.

• Community Partnerships. This involves thefunding of Aboriginal community

We have achieved

results and are starting

to make a real

difference for

Aboriginal consumers.


organisations to provide tenancy advice andadvocacy services and to exploreopportunities for other partnerships.

• Aboriginal Employment Strategy. We willcontinue to increase the number of A&TSIstaff, to support and provide careerdevelopment opportunities for existing staffand provide Cultural Awareness Training forall staff.

• Aboriginal Tenancy Program. We willcontinue to inform tenants, agents, propertyowners and housing providers about theirrights and responsibilities. We will assistparties to resolve tenancy disputes, establisheffective partnerships with DoH, DAA,AHO, ATSIC, NSWALC and strive to reducediscrimination in the private tenancy market.

• Aboriginal Services Strategy for Co-operativesand Associations. This will enhance servicedelivery to Aboriginal co-operatives andassociations through; employment of anAboriginal staff member, promotion of thebenefits of the co-operative model tocommunities, targeted assistance during theformations process and ongoing support toexisting co-operatives and associations.

• National Partnerships Project. We willparticipate in national projects concerningconsumer protection for Aboriginal peopleincluding the National IndigenousConsumer Justice Strategy, Book-upinitiative with ASIC, and the Storecharterinitiative with the ACCC. We will continueimproving service delivery to Aboriginalconsumers and building partnerships withmulti-agency initiatives, particularly inregional and remote NSW.

EAPS (Ethnic Affairs Priorities

Statement)We have implemented a number of successfulEAPS initiatives. At a policy level, we re -established our EAPS Consultative Teamwhich has representation from all areas of OFTand the CTTT (Consumer Trader and TenancyTribunal). The team meets regularly to provideinput, advice and feedback on ethnic affairsinitiatives. This ensures a coordinated approachto the planning and implementation of EAPSissues. At an operational level, we havecontinued our ethnic community educationprogram: Think Smart, which is deliveringinformation and education services throughcommunity and media partnerships.

GrantsFair Trading oversees a number of grants

programs, which support service provision

to tenants, consumers seeking advice and

advocacy in relation to personal finances,

and retirement village residents.

Calls for tenancy and financial counselling

grants are made every three years and the

next round of grants for these services will

be called in March 2005 and March 2004

respectively. We closely monitor the funded

services for compliance with funding

agreement requirements and for

accountability for their grant funds. We do

this by way of regular financial reports as

well as field visits.

Property services and home building grants

are also provided by the Office for research,

community education or training projects

which will enhance the professionalism of

those industries and ultimately provide better

outcomes for consumers. The next round of

these two industry programs will focus on

projects that incorporate new legislative

requirements, particularly those in relation to

continuing professional development.

1. Tenants Advice and Advocacy

Program (TAAP) — $6,485,306

2. Credit Counselling Program —

$1,009,674

3. Other Funded Tenancy Projects —

$292,598

4. Ad Hoc grants — $7,000

5. Office of Fair Tradingsupplementary funding to FCTF —

$21,296

6. Financial Counselling Trust Fund —

$717,867

7. Home Building Grants Program —

$194,100

8. Property Service Grants Program —

$436,681

9. Co-operatives Development Fund —

$377,064

Total grant allocations

Tenants Advice and Advocacy

Program 2002-05The year was a very significant one in terms ofthe TAAP - with the commencement of newProgram Guidelines and a comprehensiveExpression of Interest process beingimplemented for the 2002-05 fundingtriennium.


We have enhanced support to disadvantagedtenants through significant increases in corefunding and by facilitating payment of thesecond increase instalment of the Social andCommunity Services Award, whichcommenced on 28 November 2002. We alsofunded additional legal support for the Parksand Villages Service funded under the TAAPand for the specialist Aboriginal tenancyservices which are part of the Program.

23 TAAP services provide assistance toapproximately 21,000 tenants each year,including assistance with preparation forConsumer, Trader & Tenancy Tribunalhearings. We are working closely with theservices on new reporting requirementsintroduced in 2002 – 2003. These not onlyensure accountability for the funds provided,but also provide us with valuable insights intothe work undertaken and the issues involved inthat work.

Financial counsellingAs with TAAP services, financial counsellingservices which receive a funding contributionfrom either the Office’s Credit CounsellingProgram (CCP) or the Financial CounsellingTrust Fund benefited this year from thepayment of the second instalment of the Socialand Community Services Award increase.

Apart from providing financial counselling andcredit and debt legal support to approximately20,000 consumers each year, many of the fundedservices also undertake community educationprojects in their regions on a range of creditand financial management issues. This year, thevalue of this significant educational work wasrecognised through presentations at the 2002Consumer Protection Awards.

One of the funded services received theConsumer Service Award for a CommunityOrganisation and another received the ConsumerService Award for a Regional Community. Thecommunity education projects for which theAwards were nominated had both been fundedthrough the Credit Counselling Program andwe were very pleased to see such positiveresults.

In addition, to these two awards, a financialcounsellor funded through a CCP grant wasjoint winner of the Consumer Advocate Award,while another received the Highly CommendedAward in the same category. It is an honour forus to be able to provide funding support forpeople whose dedication to their communitiesis of such high order.

Electronic Service DeliveryDuring 2002-2003 we continued to expand

the range of services delivered with the aid

of technology. The projects described here

demonstrate the increasing emphasis and

reliance on these mechanisms to deliver the

services expected by our customers and the

wider community.

Electronic Self Service (ESS)ProjectWe have implemented Electronic Self Serviceto allow managers and staff to access humanresource related information. The packageincludes:

ARiES

• ARiES (Advanced Reporting InternetEnquiry System) has been developed as areporting tool for managers and supervisors.It uses information contained within theCHRIS payroll system.

• It provides managers, supervisors andappropriate staff with access to up-to-dateemployee information and managementreports.

• Managers cannot access employees’ personaldetails, but are provided with more generalinformation about employees within theirworking area as well as the reportingstructures of the office.

• ARiES is provided in a series of modules,each of which is made up of a number of pre-configured reports.

Kiosk

• KIOSK is the Employee Self-Service toolthat has been developed for Office of FairTrading staff.

• Kiosk allows employees to access data heldby Human Resources in the CHRIS payrollsystem.

• Employee access is restricted to theindividual employee’s pay and employmentrecords.

• Within the Employee Self Serviceapplication, employees will be able to updatetheir own records, for example: change ofaddress, changes to bank account details.

• Employees will also be able to view and printtheir own pay advice.

• When fully developed the workflow facilitieswithin Kiosk, will allow employees to applyon-line for leave, and other pay variationsincluding overtime. Mangers will have thefacilities to approve or decline theapplications, with employees notified ofthese decisions on-line.

23 TAAP services

provide assistance to

approximately 21,000

tenants each year...


CAS on-lineCAS stands for Customer Assistance System.CAS On-line is an opportunity to improve thequality and range of services we offer byproviding a self-help facility that will enableconsumers and traders to establish their rightsand responsibilities On-line, 24 hours a day, 7days a week. In addition to providing OFTservices via the Internet, CAS On-line willprovide OFT Customer Services staff with aneffective and efficient means of providingtimely, consistent and quality information tocustomers who contact the OFT by phone orwho visit one of the Fair Trading Centres.Design and construction of CAS Onlinecommenced in December 2002, withimplementation anticipated in the first quarter2003 - 2004.

On-Line Licensing ProjectThe Office’s involvement in the Government’sOn-Line Licensing Project is a significantcomponent of our overall electronic servicedelivery efforts. More information about theproject is on page 34.

Desktop IntegrationThis project is designed to facilitate the fullintegration of the Desktop Standard OperatingEnvironment (SOE) into the NetworkOperating System (NOS). This initiative isdesigned to support the broad goals of theorganisation and is closely aligned with wholeof government initiatives. Our ability tosupport sector-based ICT service delivery,customer-focussed services, integratedgovernment and electronic commerce will besignificantly improved. The provision of a fullyintegrated Desktop will enhance servicedelivery, while reducing support andmaintenance costs. The project will becompleted in June 2005.

Internet/Intranet ProjectPhase 1 of this project has delivered a re-designed public Web site and theinfrastructure. The second phase will deliver aCorporate Intranet that will provide staff with aconvenient and consistent way to accessrelevant organisational information andsystems. The implementation of the CorporateIntranet will yield benefits like improvedcustomer service and faster and better access toup-to-date information while savings inoperating costs and a reduction in paperworkwill also be realised. The project wascompleted in June 2003.

LAN/WAN ProjectOur Lan/Wan upgrade is aimed at building astrategic network to provide the much neededcommunication infrastructure to support thecurrent and future voice, data and videorequirements of OFT. By the end of the

financial year it was in the final implementationphase of delivering a robust, reliable, flexibleand dynamic network architecture to supportthe needs of the business and to meetgovernment initiatives like the GovernmentLicensing Project.

Corporate information SecurityProjectOur Corporate Information Security projectwas initiated to comply with the Government’smandate on developing and implementing anInformation Security Management framework.The project will also endeavour to address andimprove the security of the business andsystems. The project is continuing to developsecurity procedures, standards and anawareness program. A readiness assessmentwill be undertaken with Standards Australia, inpreparation for the security accreditation underISO standard 7799.

REVS – voice recognition forbetter serviceREVS has introduced a voice recognitionsystem to extend its customer call centreservices. Piloted to industry customersbeginning in June 2003, the service usesInteractive Voice Recognition technologywhich will ultimately allow callers to accessvehicle encumbrance information 24 hours aday, 7 days a week via the telephone. This fastefficient service will particularly suit peoplecalling outside normal business hours or thoseunable to use the OFT Internet service. Unlikeother automated systems that use informationkeyed in through a telephone keypad, REVS’new service uses speech recognition. Oncefully available, callers will need only to readout and confirm the vehicle identifiers andtheir vehicle check will be processed - withouthuman intervention.

The pilot is Stage 2 of a broader computertelephony integration project to provide bettercustomer service, improved call centre qualityand efficiency, increased call centreproductivity and various technologycapabilities for future call centreimprovements.

Customer service

improvement

Seamless customer service -integrated contact centreDuring the year, Fair Trading decided to mergeits various phone enquiry services into a singlecall-centre. This decision resulted from amajor review of the customer service model,which involved looking closely at customers’experience of accessing services. The review

This fast efficient

service will

particularly suit

people calling outside

normal business hours

or those unable to use

our Internet service.


found that there are very high levels ofsatisfaction with most aspects of service, but asingle point for accessing all phone serviceswould be more convenient for customers.

As a first step, some of the existing areas havealready been consolidated. The business namesregistration enquiry service merged with thePenrith Call Centre, and the Business LicenceInformation Service (BLIS), moved toParramatta to share facilities with REVS.

With the creation of the Department ofCommerce, there is an opportunity forbroadening the project, and the SteeringCommittee has been expanded to includeparticipation from the other Offices.

Customer service Skills AuditAccurate and consistent information forcustomers is paramount to the Office. Inaddition to regular Customer Satisfaction andShadow Shopping Surveys, we have continuedthe skills audit for staff in Customer ServicesDivision. Periodically, questionnaires areprepared which contain typical customerquestions on particular fair trading topics.These are forwarded to every Fair Tradingcentre and are completed by all relevantcustomer service officers. The questionnairesare then collated and scored. To date, the auditresults have shown a high level of competency.

Cooperative and RegionalDevelopment Strategy - CARDSLast year we reported that under the CARDSproject our Registry of Co-operatives &Associations is giving a priority focus topromoting and encouraging mutual assistanceendeavours, particularly through the formationof co-operatives, to assist rural and regionalcommunities achieve their developmentobjectives. During the year, the Registryestablished networks with key governmentagencies and increasingly local councils, toencourage and participate in regionally targetedcommunity development programs where itsexpertise in the formation of co-operativeorganisations can assist a whole-of-governmentapproach.

To further generate interest in the Strategy, theRegistry is currently developing a co-operativepilot in the Barwon Darling region of NSW.The pilot is part of a joint initiative beingundertaken by an alliance of five shire councilsin the region and the Murdi Paaki RegionalCouncil of ATSIC to develop sustainable socialand economic growth in the Barwon Darling

area. This objective is to reduce unemploymentand improve the quality of life for Aboriginalcommunities in the region by helping themestablish commercially viable businesses usingthe co-operative structure as the legalframework for new ventures.

Achievements from this and future pilots willbe developed and promoted under the CARDSproject to showcase the benefits of local levelco-operation in rejuvenating decliningcommunities in remote areas of NSW.

StaffDuring 2002-2003 Fair Trading embarked on

a number of staff related initiatives, in

particular the Women in IT Program. A new

Flexible working hours agreement came into

effect and we commenced a process to

implement salary packaging for non-SES

staff.

Women in IT ProgramTwo positions in our Information Managementand Technology Branch were identified forparticipation in the Government’s “ReskillingWomen in IT” pilot program. The aim of theprogram is to develop IT skills and experiencein women who demonstrated an aptitude for acareer in IT. The benefits and opportunitiesoffered by this project were promoted to staffto attract applicants. Suitable candidates wereselected through an interview process based on“Expression of Interests”. Temporaryappointments were made with the view offilling the positions on a permanent basis at theconclusion of the project through the meritselection process.

Flexible working hoursThe Flexible Working Hours agreement thatwas originally introduced in October 2000 hasbeen very successful. The Public SectorManagement Office approved OFT’Smainstream flexible working hours’ agreementin 2002. The mainstream Flexible WorkingHours agreement and the Inspectors FlexibleWorking Hours agreement were implementedin OFT on 7 October 2002. The newagreements will be in place for 2 years andcover all staff, excluding SES and staff workingon rosters. The difference between theprevious and new agreements is that staff cannow take consecutive flex days during the samesettlement period. The Agreement assists staffto manage work and personal responsibilities,while continuing to meet the needs ofcustomers.

This objective is to

reduce unemployment

and improve the

quality of life for

Aboriginal communities

in the region...


Workers compensation and

rehabilitationInjury management policy and procedureswere developed during the year through aconsultative process. This has now formed thebasis of how we approach rehabilitation forboth work and non-work related issues.

Occupational health and safetyFollowing a survey, our staff decided to haveOH&S committees as their preferredmechanism for consultation on OH&S matters.Following nominations by staff, OH&Scommittees have been formed across theagency. Their membership reflects the diversenature of the work performed by OFT staff.

The committees have worked closely with theOffice’s OH&S working group to ensure wemeet the requirements of the Occupation Health& Safety Act 2000 and its regulations. A riskmanagement checklist was developed and it isbeing used by managers and the OH&Scommittees to conduct safety audits. Policiesand procedures are being reviewedsystematically. A review of our emergency andevacuation procedure was completed duringthe year.

Salary packagingThe Office of Fair Trading has taken steps toimplement salary packaging for Non-SESemployees in accordance with Governmentpolicy. Salary packaging is now provided tostaff through a government contract provider(McMillan Shakespeare) and will initiallycover salary packaging for:

• Motor Vehicles (novated leases - 100%private usage)

• Laptop computers

• Superannuation.

The Award was effective from 1 January 2003but Agencies are able to choose the date ofimplementation within a reasonable timeframe.

AccommodationDuring the year we completed a number of

accommodation related projects. The

outcome has been a better work

environment for staff, and most importantly, a

greater opportunity to improve service

delivery to business and consumers.

Fair Trading Centre relocationsIn 2002 - 2003 the Fair Trading Centres atTamworth, Queanbeyan and Port Macquariewere relocated to new premises and includedimproved facilities for our diverse range ofcustomers. At Tamworth, the FTC was co-located with the CTTT into a joint facility toprovide a much-improved service to customersin a more convenient location. All the fit-outswere achieved on time and within budget.Additional advantages included more attractivecommercial leases in terms of rent andlocation.

Home Building ServiceA major program included makingarrangements to accommodate the newlyformed Home Building Service into existingleased space at Parramatta. This was achievedthrough rationalising and re-organisingaccommodation within existing leased space inboth the Sydney CBD and Parramatta. Theobjective was to optimise the potential rentalsavings, identified in our MasterAccommodation Facility plan, whilst achievingthe corporate and strategic accommodationobjectives. The Home Building Service wasscheduled to relocate to Parramatta in August2003.

Measurement and Technical

Services relocationIn April 2003, our Measurement and Technicalservices group relocated from Parramatta andthe Standard Laboratory at Belmore to a newleased facility within the CSIRO complex atWest Lindfield. OFT has a long-term lease andhas gained access to specialist facilities thathave saved a substantial amount inestablishment and maintenance costs.

...a joint facility to

provide a much-

improved service to

customers in a more

convenient location.


Fair Trading Publicationsº New and revised publications produced inthe 2002-2003 financial year* Electronic format only

Corporate Publications:

• Annual Reports 1997/1998, 1998/1999, 1999/2000,2000/2001*

• Annual Report 2001-2002 º• Customer service standards – our guarantee of service

–English* º, Arabic*, Chinese*, Greek*, Italian*,Vietnamese*

• Fair Trading and the NSW Privacy Law• Our Services – English º• We can help you – English º, Arabic, Bosnian º,

Chinese, Croatian, Farsi*, Fijian*, Filipino*,Greek, Hindi*, Indonesian º, Italian, Japanese*,Khmer*, Korean, Macedonian, Polish*, Portuguese*,Russian*, Serbian*, Spanish, Tamil º, Thai º,Turkish, Vietnamese

• Advertising checklist for the use of media staff* º

Property and Tenancy Publications:

• Buying a home• Buying into a strata scheme º• Buying or selling at auction• Conveyancing*• Discrimination and renting• Ending a tenancy• Holiday lettings*• Living in a community scheme º• New laws for holiday vans º• New strata schemes management laws º• Property management• Renting holiday homes*• Residential park liaison committees• Residential park living º• Residential park owners º• Residential park residents’ rights – what you should

do if you hear that the park may close º• Retirement village living• Retirement village repairs º• Retirement village residents’ rights – what you should

do if you hear that the village may close º• Retirement Villages Act - Dealing with prospective

clients• Retirement Villages Act - Effect of the new Act on

existing contracts• Retirement Villages Act - Financial accounts• Retirement Villages Act - Recurrent charge variations• Retirement Villages Act - Residents committees• Retirement Villages Act - Statements of expenditure• Retirement Villages Act - Strata retirement villages• Selling your home*• Starting a tenancy• Strata disputes º• Strata living – English º, Chinese, Vietnamese*,

Arabic*• Strata mediation º• The renting guide – English º, Arabic, Chinese,

Croatian, Farsi, Greek, Italian, Japanese, Khmer,Korean, Macedonian, Polish, Portuguese, Russian,Serbian, Spanish, Turkish, Vietnamese

• What is a retirement village? º• What you should know before you rent – Bosnian* º,

Dari* º, Indonesian* º, Tamil* º, Vietnamese* º

Building Publications:

• A builders guide to customer service º• Becoming an owner/builder º• Building a pool º• Building inspections – a home buyer’s guide º• Buying off the plan º• Electrical accidents in 1999• Electrical accidents in 2000• Electrical safety for plumbers• Electrical safety for workers• Getting a contractor licence º• Guide to standards and tolerances º• Home building checklist – English º, Arabic,

Chinese, Macedonian, Vietnamese• Home building contract – packet 2 (cost $10.85) º• Home building contracts – why you should use one º• Home building reforms as at 1 July 2002 º• Home warranty insurance º• Minor works building contract pad 10 (cost $10.85)º• NSW HIH rescue package – consumers• NSW HIH rescue package – builders and developers• Owner-builder approved courses º• Owner-builder approved equivalent qualifications º• Post construction º• Protect your home from termites º• Renewing your contractor licence º• Renovations contract pad 10 (cost $10.85)• Resolving building disputes º• Swimming pool contract – packet 2 (cost $21.50)

Consumer Publications:

• A student’s guide to consumer rights º• A seniors guide to consumer rights º• Backpacker accommodation*• Banking - reducing your transaction costs – English º,

Arabic, Chinese, Vietnamese• Booking a holiday through a travel agent*• Borrowing money – English, Arabic, Chinese,

Vietnamese• Buying a mobile phone – English º, Arabic, Chinese,

Italian, Vietnamese• Buying a used car – English, Arabic, Chinese, Italian,

Vietnamese• Car rental*• Check the safety of your pool• Child safe blind and curtains• Consumer help for the busy traveller• Consumer tips for travellers: authenticity of indigenous

art and crafts• Credit cards, and ‘interest free’ deals – English,

Arabic, Chinese, Vietnamese• Door-to-door sales – English, Arabic, Chinese,


Italian, Vietnamese• Electrical power tools º• Electrical safety guide º• Exercise your rights – new rules for fitness service

providers• Gas water heaters º• Help with credit problems• In good hands – baby products and you º• Inflatable pools – consumers º• Introduction to comparison rates º• Lay-bys information for consumers• Little black book of scams º• Love and loans º• Moneystuff kit• Nursery furniture and baby products º• Pyramid schemes• Relationship debt – English, Arabic, Chinese,

Vietnamese• REVS brochure – cars and boats º• REVS poster – one in 5 used cars repossessed• REVS poster – would you buy a car or boat• Safety switches – information for consumers• ScamSmart kit º• Scams and how to avoid them – Arabic*º,

Chinese*º, Greek* º, Italian* º, Korean* º,Spanish* º, Vietnamese* º

• Shopping and refunds – information for consumers º• Some things to consider before you borrow money –

English, Arabic, Chinese, Vietnamese• The hard sell º• The seniors’ guide º• The shoppers’ guide º• Toughened glass º• Toy safety checklist º• Vanity publishing* º• Work from home scams – English º, Arabic, Chinese,

Italian, Vietnamese• Your statutory warranty poster º

Business Publications:

• Advertising º• A guide to co-operatives – English, Arabic* º,

Italian* º, Spanish* º, Vietnamese* º• Balloon Payments – a guide for business• BLIS brochure• Building customer relationships º• Business names º• Compulsory sign for pawnbrokers• Corded internal window coverings º• Credit º• Customer service º• Customer service guide*• Dealing with business scams – English, Arabic* º,

Chinese* º, Greek* º, Italian* º, Korean* º,Spanish* º, Vietnamese* º

• Disposable cigarette lighters – safety laws• Good business matters kit º• Handling complaints and repairs º• How to form a co-operative• Inflatable pools – suppliers º• Interest free offers and promotions – a guide for

business• Invoice fraud º• Knives – full kit

• Knives brochure• Laser pointers – safety laws• Lay-by sales º• Model rules for incorporated associations º• Online services for business º• Recliner chair• Refunds info for business º• Refunds poster• Registry of co-operatives• Running an incorporated association• Sale of meat• Sales methods º• Setting up an association – English, Arabic* º,

Italian* º, Spanish* º, Vietnamese* º• Signage for the sale of meat º• Soda siphon brochures• Warranties and repairs º

Aboriginal Publications:

• Aboriginal housing providers• Book-up• Book-up: What to look for• Buying a car• Discrimination and renting• Don’t get caught out with credit• Fair go º• Fair go poster• Keeping your kids safe• Know your rights poster• Mad choices º• Need credit? Well, think again!• Not just surviving poster• Problems leasing your home• Renting a home º• Renting information for Aboriginal housing providers• Shopping refunds and lay-bys• Starting a business º• Sorting out your tenancy problems º• Survival day poster• Thinking of starting a cooperative* º• Toy safety checklist º• What REVS can do for you• Your rights on renting your home

Other Titles

• Retirement village green – newsletter issue 3, 2002 º


Advisory CouncilsFair Trading Advisory Council

Ms Margaret Hole, AM (Chairperson) (C)Partner, Solicitor in Legal Firm

Ms Narelle Brown (C)Co-ordinator, Ryde Eastwood FinancialCounselling Service

Mr Francis (Frank) Burgess, AM (I)

Chief Executive Officer, Institute ofAutomotive Mechanical Engineers Inc.Chair of Motor Trade Advisory Council

Ms Karen Cox (C)Co-ordinator, Consumer Credit Legal Centre(NSW) Inc.

Mrs Elizabeth Crouch (I)Executive Director, NSW Housing IndustryAssociationChair of Home Building Advisory Council

Mr Malcolm Gledhill (O)Solicitor, Slade ManwaringChair of Retirement Villages Advisory Council

Mr Phil Marchionni (C)Industrial Officer, Australian Association ofProfessional Engineers, Scientists andManagers Australia (APESMA)

Mr David Matthews (C) (I)Director, Bi-Cam Pty Ltd

Mrs Shirley Morgan (C) (O)Aboriginal Employment Co-ordinator,University of Western Sydney

Mr Rodi Orantia (O)Certified Practising Accountant

Dr Gail Pearson (O)Senior Lecturer, School of Law, Faculty of Law,University of New South Wales

Ms Gae Pincus (C) (O)Consultant Lawyer

Ms Phillippa Russell (O)Practising Lawyer and Strata Managing AgentChair of Property Services Advisory Council

Mr Peter Shearing (C)Farmer and Grazier

Mr George Varughese (C)Hon. Secretary, Ethnic Communities’ Councilof NSW Inc.

Mr David O’Connor AMCommissioner for Fair Tradingex-officio

Home Building Advisory Council

Ms Elizabeth Crouch (Chairperson) (I)Executive Director, NSW Housing IndustryAssociation

Ms Kim Crestani (O)Managing Director, Order Architects Pty Ltd

Ms Penelope Ho (O)Senior Lawyer, Corporate and CommercialLaw, Blake Dawson Waldron

Ms Sheryl Kotthoff (C)School Administrative Support Staff Member,Grafton High School

Professor David Lamond (O)Director, Sydney Graduate School ofManagement

Ms Maxine Leeson (I)Managing Director, Stone-Edge Homes

Mr Peter McClelland (I) (O)President, Construction Forestry Mining &Energy Union

Mr William Peter Meredith (I)Director, Housing, Master BuildersAssociation of NSW

Mrs Gisela Ramensky (C) (O)Lawyer

Mr Salvatore Russo (C)Lawyer

Mr Ronald Scott (I) (O)President, Furnishing Industry Association ofAustralia (Management Services) Ltd (NSWBranch)

Mr John Worthington (O)Building Consultant, Arbitrator, Mediator

Mr Paul Zammit (C)Company Director, Zammit Sales, Marketingand Management Pty Limited


Motor Trade Advisory Council

Mr Francis (Frank) Burgess, AM(Chairperson) (I)Chief Executive Officer, Institute ofAutomotive Mechanical Engineers (Inc.)

Ms Maria Alessi (I)Executive Secretary, Institute of AutomotiveMechanical Engineers (Inc.)

Mr David Allen (O)General Manager, Compliance Strategy, RTA

Mrs Cherylene Bolman (I)Company Director, Retired

Mr Ronald Bowden (I)Acting Chief Executive Officer, Service StationAssociation Ltd

Mr John Degen (C)Senior Adviser, Government & CorporateAffairs, State Chamber of Commerce

Mr Garry Hingle (O)Secretary, Vehicle Division of the AMWU(NSW)

Mr Marko Lahtinen (I) (O)Government Liaison Manager, Toyota MotorCorporation Australia

Mr James McCall (I)Deputy CEO, Motor Traders Association


Mr Robert McDonald (C)Senior Manager, NRMA Industry Research,NRMA Insurance Limited

Mr Alick O’Har (C)Financial Counsellor/Co-ordinator, CreditLine Fairfield

Ms Maryanne Petersen (O)Executive Officer, Automotive Training Board

Mrs Margaret Thompson (C)Company Director, Automotive TrainingAustralia

Mr Neil Walker (I)Manager, Operational Support &Development,Insurance Manufacturers of Australia Pty Ltd


Property Services Advisory Council

Ms Phillippa Russell (Chairperson) (O)Practising Lawyer and Strata Managing Agent

Ms Mara Ashmore (C)President, Property Owners’ Association ofNSW

Mrs Cristine Castle (I)

Vice President of Real Estate Institute of NSWLicensed Real Estate Agent

Mr Kevin Clay (I)President of Property Industry CouncilLicensed Real Estate Agent

Mr Christopher Fitzpatrick (I)President of Real Estate Institute of NSWLicensed Real Estate Agent

Ms Carmen Jauregui (C)Co-ordinator, Eastern Area Tenants Service

Mrs Maria Linders (I)Managing Director, Linders StrataManagement Pty Ltd

Mr John McIntyre (I)Solicitor

Mrs Judith Maher (C) (O)Manager, Complaints, Aboriginal & TorresStrait Islander Commission

Ms Sonia Minutillo (I)Executive Vice President, Australian Liquor,Hospitality & Miscellaneous Workers Union,NSW Branch

Ms Pamela Morgan (O)Lecturer in LawSolicitor

Mr Colin Tate (C)Managing Director, Fuse Agency Pty Ltd

Mr Eric Prince, AM (I)Manager, Prince Harrington Valuers Pty Ltd

Miss Kate Vanderfield (C)Solicitor in commercial law with AustralianGovernment Solicitors

Mr Donald Wright (I)Director, Stock and Station Agency


Retirement Villages AdvisoryCouncil

Mr Malcolm Gledhill (Chairperson) (O)Solicitor, Slade Manwaring

Mr Reginald Allen (C)Retired, village resident

Shirley Bains (C)Nominee of the Combined Pensioners &Superannuants Association

Mr David Bentley (I)Manager, Retirement Village

Professor Clifford Blake, AO (O)Retired, Vice Chancellor, University ofAdelaide and Charles Sturt University

Ms Kathleen Brewster (C)Retired, President of the Council on the Aging

Mrs Barbara Burnham (C)Retired, Member of Retirement VillageResidents Association

Ms Joan Carter (C) (O)Retired, Nursing qualifications

Mr John Cowland (I)Chief Executive Officer, Illawarra RetirementTrust

Miss Geraldine Daley (O)Solicitor, The Aged-Care Rights Service

Ms Wendy Fisher (C)Principal Solicitor, The Aged-Care RightsService

Mr Ian Hill (C)Retired, Member of the Retirement VillageResidents Association

Mr Nick Reid (I)General Manager, Gandel Group, RetirementDivisionLicensed Real Estate Agent

Mr Paul Sadler (I)CEO, Aged & Community Services Associationof NSW & ACT

Ms Lynne Wilkins (C)Solicitor, Legal Aid Commission of NSW


Key:C: Consumer GroupsI: Industry GroupsO: Other Groups (including academic, tradeunions, etc)


Portfolio Authorities

Consumer, Trader and Tenancy TribunalStockland HouseLevel 12, 175 Castlereagh StreetSydney NSW 2000Ph: 1300 135 399

Co-operatives Council154 Russell StreetBathurst NSW 2795Ph: 02 6333 1400

Registry of Co-operatives & Associations154 Russell StreetBathurst NSW 2795Ph: 02 6333 1400

Rental Bond BoardLevel 4, 234 Sussex StreetSydney NSW 2000Ph: 02 9377 9000

Statutory Bodies:• Fair Trading Advisory Council• Home Building Advisory Council• Property Services Advisory Council• Motor Trade Advisory Council• Retirement Villages Advisory Council

Level 20, 227 Elizabeth StreetSydney NSW 2000Ph: 9338 8979

Registrar of Funeral Funds154 Russell StreetBathurst NSW 2795Ph: 02 6333 1400

New South Wales Products SafetyCommitteeLevel 3, Enterprise House1 Fitzwilliam StreetParramatta NSW 2150

Financial Counselling Trust FundLevel 6, Enterprise House1 Fitzwilliam StreetParramatta NSW 2150

Electrical Equipment Safety AdvisoryCommitteeLevel 4, Enterprise House1 Fitzwilliam StreetParramatta NSW 2150


Fair Trading CentresOur Fair Trading Centres (FTCs) are located at the following addresses. If you arelocated outside the Sydney Metropolitan region you can contact the Fair TradingCentre nearest you on 13 32 20. Calls to this number from within the SydneyMetropolitan region and from all mobile telephones will be received at ourPenrith Call Centre.

Shop 1R33 Moore StreetLiverpool 2170

Level 5400 Hunter StreetNewcastle 2300

184-186 Lords PlaceOrange 2800

1 Fitzwilliam StreetParramatta 2150

518 High StreetPenrith 2750

143 Horton StPort Macquarie 2444

Shop T7, Civic PlazaMorisset StreetQueanbeyan 2620

Level 21227 Elizabeth StreetSydney 2000

Cnr Kable Ave & Darling StreetTamworth 2340

43 Wharf StreetTweed Heads 2485

8 Baylis StreetWagga Wagga 2650

63 Market StreetWollongong 2500

1 Fitzwilliam StreetParramatta NSW 2150

Head Office

Tel: 9895 0111Fax: 9895 0222

REVS

Tel: 9633 6333or 1800 424 988 (outside Sydney)Fax: 9891 5135

234 Sussex StreetSydney NSW 2000

Rental Bonds

Tel: 9377 9000 or 1800 422 021Fax: 9377 9371

Tenancy Services

Tel: 9377 9100 or 1800 451 301Fax: 9377 9371

Aboriginal Tenancy Information

Tel: 9377 9200 or 1800 500 330Fax: 9377 9371

Strata Schemes and

Mediation Services

Tel: 9338 7900or 1800 451 431 (outside Sydney)Fax: 9338 7999

Bradfield RoadLindfield West NSW 2070

Standards Laboratory

Tel: 8467 4400Fax: 8467 4444

154 Russell StreetBathurst NSW 2795

Registry of Cooperatives &

Associations

Tel: 6333 1400 or 1800 502 042Fax: 6333 1444

490 David StreetAlbury 2640

85 Faulkner StreetArmidale 2350

154 Russell StreetBathurst

Level 3A13 Kildare RoadBlacktown 2148

32 Sulphide StreetBroken Hill 2880

22 Park AvenueCoffs Harbour 2450

50 Wingewarra StreetDubbo 2830

19-21 Watt StreetGosford 2250

50 Victoria StreetGrafton 2460

Level 34-8 Woodville StreetHurstville 2220

29 Molesworth StreetLismore 2480

Office Locations


IndexAboriginal Action Plan 44Aboriginal communities 40, 48Aboriginal consumers 39Aboriginal Employment Strategy 42Aboriginal Tenancy Program 45ACCC 21Access & equity 42Accommodation 49Accurate information 21Administrative Appeals Tribunal 22Administrative Decisions Tribunal 17, 22Advisory Councils 14, 52Australasian Real Property Regulators

Conference 37Australia Post 23Australian Competition and Consumer

Commission 21Australian Retailers Association 37BLIS 48Building Code of Australia 12, 16Building consultants 34Building contracts 36Building Insurers’ Guarantee Corporation 12Building regulation 16Business Licence Information Service 48Business names 18, 33Call-centres 47Campbell Inquiry 11, 15, 34CARDS 48Care labelling 18Cars 38CAS on-line 47Certification 33Child safety 27Christmas product survey 27Civil litigation 4, 22Co-operative Capital Units 14Co-operatives & Associations 1, 37Co-operatives compliance 32Co-operatives Development Fund 45Co-operatives legislation 14Co-operatives National Working Party 14Commissioner for Fair Trading 3, 8, 16, 17, 19Commission payments 16Community schemes 37Construction Industry Training Advisory

Board 34Consumer credit 12Consumer Credit Code 10, 13Consumer Protection Awards 36Consumer, Trader & Tenancy Tribunal 12, 16,

17, 19, 22, 41, 46Consumer Week 36, 37Contractor licences 17Contracts 16Conveyancers 17Cooling off period 18Cooperative and Regional Development

Strategy 48Corporate objectives 7

Counter enquiries 35Credit Code 13Credit Counselling Program 45Customer Assistance System 47Customer satisfaction 43, 48Customer service 3, 47Deceptive health claims 24Department of Commerce 1, 3, 6, 33, 48Dexta Corporation 12Direct commerce 15Direct mail promotions 23Director-General Department of

Commerce 8Disability Action Plan 43Disciplinary action 31Dispute resolution 12, 36Diversity training 44Door to door sales 15E-commerce 21EEO survey 43Electrical accidents 27Electrical safety 14, 27Electricity 13Electronic commerce 21Electronic service delivery 46Elsa Dixon Program 42Employment agents 17Energy and Water Ombudsman 13Enforcement 3, 20Ethnic affairs 45Ethnic communities 34, 38Ethnic Media and Community Leaders

Conference 36, 38Ethnic tenancy education 37Fair Trading Centres 2, 39, 49, 55Fair trading complaints 35Fair trading enquiries 35False billing 23, 24Finance brokers 13, 16, 24Financial counselling 46Financial Counselling Trust Fund 45Financial soundness of licensees 34Flexible Working Hours Agreement 44, 48Fraud 21Funeral funds 14Gas appliance safety 13Good business matters 38Government Access Centres 2, 39Government Licensing System 34Grants 45Highlights 5HIH Rescue Package 12Holiday parks 17Home building contracts 12Home Building Grants Program 45Home building investigations 20Home building licensing 33Home building reform 11, 12, 16, 34Home Building Service 4, 10, 12, 30Home building Web site 36


Home maintenance 36Home warranty insurance 12, 17, 34Information security 47Information services 34Inspections 4, 27, 32Integrated contact centre 47Intelligence software 20International Consumer Protection and

Enforcement 21Intranet 47Introduction agencies 14Investigations 4, 23, 30Jail terms 15, 20Joint Select Committee on the Quality of

Buildings 11, 16LAN/WAN Project 47Land and Environment Court 17Legislation 9, 11, 15Legislative framework 4Licensed motor dealers 25Licensing 33Made in Australia 16Mail-order scams 23MCCA 13, 14Migrant Career Development Program 43Ministerial Council on Consumer Affairs 13Misleading advertising 24, 25Money Stuff 39Mortgage brokers 16Motor dealers 18, 25Motor Vehicle Repairs Industry Authority 18National Competition Policy 11, 14National Exchange of Vehicle & Driver

Information 38Net public benefit test 11NetMap 20Network Operating System 47NEVDIS 38Occupational health and safety 49Odometer interference 25Offences 23Office hours 2Office Locations 55Office of Government Business 8Office of Government Procurement 8Office of Industrial Relations 8Office of Information and Communications

Technolog 8Older Australians 36On-Line Licensing Project 3, 33, 47Owner builders 17, 36Pay day lenders 13Penalty Notices 23, 33Performance information 6, 11, 21, 43Planning framework 6Portfolio Authorities 54Pre-packaged carton meat 29Product information standards 18

Product of Australia 16Product recalls 28Product safety 27Products Safety Committee 27Professional development for licensees 34Program allocations 5Property conference 37Property Service Grants Program 45Property stock and business agents 19Prosecutions 4, 20, 21, 22, 23Publications 34, 39, 50RBIS 41Real estate 26Regional compliance 32Regional services 39Registration 33Registry of Co-operatives

& Associations 32, 48Rental Bond Internet Service 41Rental bonds 40Residential parks 13, 26Retirement villages 26REVS 33, 38, 47, 48Royal Easter Show 27Safety standards 18Salary packaging 49Scam Smart 36Scams 23, 36School projects 37Seniors 37Shadow shopping 21, 48Showbags 27Skills audit 48Spokeswomen 44Staff 48Standards and tolerances 36Standards Laboratory 29, 49Starr-Bowkett societies 32Statute law revision 15Stolen vehicles 25Strata schemes 19, 41Strike Force Worth 25Structure 8Subordinate legislation review 15Telemarketing 15Telephone enquiries 35Tenancy 40Tenants Advice and Advocacy Program 45Textile products 18Toy safety 27Trade measurement 29Unleaded petrol 18Unsafe products 28Valuers 17Vanity publisher 24Web site 3, 34, 35, 41, 47Women in IT 44, 48Workers compensation and rehabilitation 49

phone13 32 20

Language assistance

Ring the telephone interpreting service on 13 14 50 and ask for an interpreter in yourlanguage.The interpreter can then contact the Office of Fair Trading.

Fair Trading Centres – call 13 32 20 for general enquiries

Office of Fair Trading1 Fitzwilliam Street Parramatta NSW 2150 PO Box 972 Parramatta NSW 2124Tel. (02) 9895 0111

www.fairtrading.nsw.gov.au

For help on any fair trading issue call your nearest Fair Trading Centre, or call thespecialist service listed below which is relevant to your enquiry. A range of FairTrading services are also available via Government Access Centres (GACs) andother agency locations throughout regional New South Wales. For details, visit the Web site www.fairtrading.nsw.gov.au

Fair TradingCentre locations

AlburyArmidaleBathurstBlacktownBroken HillCoffs HarbourDubboGosfordGraftonHurstvilleLismoreLiverpoolNewcastleOrangeParramattaPenrithPort MacquarieQueanbeyanSydneyTamworthTweed HeadsWagga WaggaWollongong

October 2003 FT252

TTY Telephone service for the hearing impaired.

General enquiries....................................................9338 4943

Tenancy enquiries ..................................................9377 9099

REVS enquiries......................................................1300 135 399

Documents

serving consumers and traders in NSW...Page 2 Fair Trading: serving consumers and traders in NSW Minister’s Foreword Services Public customers: • 4-5 million requests for services