Gidget Campers fined $1million

Queensland's Gidget Campers has been ordered to pay more than  $1 million in fines, compensation and court costs following an Office of Fair Trading (OFT) investigation.

Gidget Campers boss Glenn Wills was found guilty in the Brisbane Magistrates Court of seven counts of receiving payment for camper trailers but failing to supply them within a reasonable time, in breach of the Australian Consumer Law.

Wills was fined $6000 plus costs of $5000, and ordered to pay $20,000 compensation to one customer. No conviction was recorded.

This follows Gidget being found guilty earlier this year of 11 similar offences and fined $100,000 plus substantial compensation for consumers.

The OFT launched an investigation after receiving complaints from 11 consumers who had paid deposits to Gidget between June 2015 and March 2017 but experienced significant delays in receiving their campers.

After the OFT’s intervention, seven of the consumers received full refunds and three received their retro campers. Unfortunately, one complainant didn't receive any refund of the $27,640 they had paid to Gidget, or their camper, as the company was in liquidation at the time.

Gidget was placed into liquidation in February, leaving a further 56 consumers out of pocket and without their ordered camper. Fourteen of those consumers were based in the USA.

The court ordered Gidget to pay compensation of $896,865.60 to Australian consumers and a further US$196,895.39 to US consumers. A conviction was recorded against the company.

In sentencing Gidget, Magistrate Payne noted the company had ignored consumers’ complaints until the OFT became involved and said the outcome of the matter needed to serve as a warning to other businesses to follow through and deliver goods and services as promised.

Magistrate Nunan said Wills did not show a good sense of judgement, and had given unrealistic hopes to his customers.

Magistrate Nunan also said, when deciding a penalty, he had considered Wills’ poor health, lack of criminal history, and that he had no permanent residence after losing his house when he was declared bankrupt.

Fair Trading Executive Director Brian Bauer said the collapse of Gidget and the penalties handed down by the courts were a stark reminder to businesses not to play fast and loose with consumers’ money.

“Taking large sums from consumers based on empty promises is not only unethical, it is illegal,” Mr Bauer said.

“Businesses that cause detriment to consumers this way will be punished.”