FAI Home Security
FAI Home Security and its linked credit provider FAI Finance
Corporation sold more than 100,000 home alarms to consumers
throughout Australia. In selling the alarms various
representations, including that the alarm was "state of the art"
were made. Using highly developed sales techniques and focusing on
working class areas, low quality alarms were sold at high
prices.
The action
In 1999 Maurice Blackburn issued a class action in the Federal
Court against FAI Home Security and FAI Finance Corporation on
behalf of consumers who bought the home alarm in reliance on the
representations. The claim alleged that various representations
made during the sale of the Home Security Guard I and II alarm
systems were misleading and deceptive.
Settlement
On 18 April 2001 the Court made orders approving the settlement
of the class action on behalf of Maurice Blackburn's clients.
Our clients received a refund of most of the purchase price of the
alarm systems plus all legal costs. This representative
proceeding was a cost-effective way to ensure that a large number
of consumers with relatively small claims could successfully obtain
damages