Two people from a business in Coodanup have been fined $6000 each, and ordered to pay $7125 in compensation by Perth Magistrates Court.
Niche Concrete Services failed to provide concrete supplies to three customers who had paid deposits on the items.
Dufty Jack Minhinnick, the registered owner of the business, and Belinda Louise McFarland (nee Rodda), whose name was used to open the business bank accounts, pleaded guilty to three charges under the Australian Consumer Law, including wrongfully accepting payment and failing to supply goods and services within a reasonable time.
The business accepted deposits of up to $4350, with the work never carried out and refunds not provided.
When Minhinnick was asked by Magistrate DeVries what happened to the money, he replied "I dunno, spent it I guess."
The Magistrate later described the comment as a "disgrace", and said the penalty handed down was intended to send a powerful message to the community, that actions such as this won't be tolerated.
Magistrate DeVries also said Ms McFarland's record of dishonesty offences was poor - having served a prison term for stealing and fraud in the past.
Commissioner for Consumer Protection David Hillyard said taking large amounts of money from consumers and delivering nothing in return is a serious offence.
“The trust and faith of these three consumers were betrayed by these two business operators who had failed to either carry out the work as promised or provide refunds when requested,” Mr Hillyard said.
“Businesses should have sufficient cash flow to accept only small deposits for jobs and then charge the balance upon completion.
“Bear in mind that tradies can only charge a maximum 6.5 percent deposit for some building work over the value of $7,500 so report them if they demand more.”
Consumers having problems with businesses failing to complete work within a reasonable time, or within agreed time-frames, should lodge a complaint on the Consumer Protection website.
Enquiries can be made by email consumer@dmirs.wa.gov.au or by calling 1300 30 40 54.
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