Photography business which preyed on disadvantaged consumers fined $1.1 million

A BUSINESS which tricked Aboriginal consumers into paying up to $10,000 for family photo packages has been fined $1.1 million.

The business went into administration earlier this year. Picture: iStock

A PHOTOGRAPHY business which tricked disadvantaged consumers into paying up to $10,000 for family photo packages has been ordered to pay $1.1 million in fines by the Federal Court.

Lifestyle Photographers Pty Ltd, which formerly traded as Expression Sessions, was found guilty of engaging in unconscionable conduct in a case brought by the consumer watchdog last year.

The Australian Competition and Consumer Commission alleged Lifestyle Photographers used “unfair tactics and undue pressure” in selling photographic products at its kiosks and pop-up stores in shopping centres around Australia between 2012 and 2014.

It also failed to provide clear and accurate information about contract terms, had unfair contract terms and targeted vulnerable Aboriginal and Torres Strait Islander consumers, according to the ACCC.

The firm used 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, with payments in some cases coming directly out of consumers’ Centrelink payments.

Lifestyle Photographers admitted liability and the parties made joint submissions to the court in relation to penalties and other orders.

On Tuesday, the court ordered Lifestyle Photographers to pay a penalty of $1.1 million and to offer refunds to all customers who purchased photographic products from the business between 2012 and 2014.

The firm must write to all customers who entered into a contract between 2012 and 2014 to advise them that they are entitled to receive a refund. Customers who wish to receive a refund will not need to respond to the letter.

“In many cases, Expression Sessions’ customers were Aboriginal or Torres Strait Islander or were financially disadvantaged,” ACCC Deputy Chair Delia Rickard said. “Pressuring vulnerable or disadvantaged consumers into buying products they cannot afford is clearly unacceptable.

“Businesses have a responsibility to be upfront with consumers and clearly explain the total price of the goods and services they are offering. The ACCC will continue to prioritise consumer protection issues impacting on vulnerable and disadvantaged consumers.”

In December 2015, Lifestyle Photographers Pty Ltd sold the Expression Sessions business to a related company, Easy Payments Pty Ltd and Lifestyle then entered voluntary administration. The ACCC subsequently joined Easy Payments to the proceedings. The Federal Court made orders against both companies.

An ACCC spokeswoman said the watchdog would “seek to enforce [the penalty] against the liquidators of Lifestyle”. News.com.au has contacted the liquidators for comment.