Company tricked indigenous consumers into paying $10k for family photos: ACCC

A PHOTO company is facing allegations it tricked parents into paying nearly up to $10,000 for family photos — straight out of their Centrelink payments.

A PHOTOGRAPHY company could be facing up to $1.1 million in fines over allegations it systematically tricked Aboriginal consumers into paying up to $10,000 for family photographs, with the money coming directly out of some consumers’ Centrelink payments.

The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court against Lifestyle Photographers Pty Ltd, alleging the company made false or misleading representations and engaged in unconscionable conduct when selling photography products.

The ACCC alleges in court documents that between 2012 and 2014, Lifestyle Photographers operated kiosks and pop-up stores in shopping centres around Australia, where it would offer customers a free photo shoot or free photographs, claiming they would be able to receive the photos at no cost and without entering into a contract.

The consumer watchdog claims Lifestyle Photographers used these promises of free photographs and other inducements to then pressure the customers into signing expensive ongoing contracts, some of which ranged from $2800 up to $9900, often without explaining the total amount payable.

According to the ACCC’s court documents, high-pressure sales tactics were allegedly used both in inducing the consumers to have the photographs taken, and in the contract negotiations, including informing the customer the photographic prints would be destroyed if they did not buy them.

The ACCC claims Lifestyle Photographers knew or ought to have known that some customers were vulnerable because they were Aboriginal or Torres Straight Islander and their first language was not English, or they had low levels of literacy or numeracy.

Lifestyle Photographers allegedly introduced limits on the packages it would sell to Aboriginal customers in the NT and northern WA from November 2013, according to court documents.

One witness from the Bidyandaga Community in Western Australia, who left school in year 11 and does not speak English as a first language, said she was with her daughter and granddaughter at the Paspaley Plaza Shopping Centre in Broome when she was approached.

Court documents allege the sales agent offered to take photos of her granddaughter “for free”, but after the photos were taken, the agent made her sign a contract, saying, “We will take $179 a fortnight from your account.”

Another witness, a single mother with reading difficulties from Gympie in Queensland, was told by a sales agent there was a baby photo competition and she could enter if she purchased a photo package.

“It is announced on Facebook and you can win money,” the mother was told, according to court documents.

“You will have to pay $50.82 fortnightly until it is all paid off.”

ACCC Commissioner Sarah Court said the conduct of concern allegedly targeted the most vulnerable groups in the Australian community, including customers who were in “considerable financial distress” or had “limited capacity to understand commercial contracts”.

“These are huge amounts,” she told news.com.au

“[Lifestyle Photographers] may well put on evidence about what a consumer is going to get for $9,900, but clearly if you are reasonably commercially savvy, you’re not going to sign up for a set of photos that’s going to cost you thousands of dollars.”

She said the ACCC was prioritising consumer protection issues impacting vulnerable consumers, particularly in indigenous communities.

“(Lifestyle Photographers’) customers were in many cases Aboriginal or Torres Strait Islander or were financially disadvantaged,” she said.

“The ACCC claims that the sales method used by Lifestyle Photographers, as well as the use of unfair tactics and undue pressure and the failure to provide clear and accurate information about its contractual terms, was unconscionable.”

Lifestyle Photographers operated mobile photos studios in cities in all states and territories, including Cairns, Manunda, Earlville, Broome, Palmerston, Gympie, Mildura, Townsville, Karama and Mt Isa.

The ACCC is seeking declarations, injunctions, redress for affected consumers, pecuniary penalties, corrective notices, the implementation of a consumer law compliance program and costs. The maximum penalty is $1.1 million.

The case has only just begun and Lifestyle Photographers is not yet required to file a defence.

A directions hearing is set in the Federal Court for 8 October.

Lifestyle Photographers has been contacted for comment.

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