The Australian Competition and Consumer Commission (ACCC) has received permission from the Federal Court to pursue legal action against Beacon Products Pty Ltd and Zandox Group Pty Ltd, both currently in liquidation, for alleged unconscionable conduct and misleading or deceptive practices under the Australian Consumer Law.

According to the ACCC, the companies engaged in practices that misled customers into making unsolicited purchases of printer cartridges and cleaning products. They allegedly deceived businesses by falsely claiming to confirm orders that had never been placed, thereby exerting undue pressure on customers.

Specific allegations include misleading customers into believing that an initial order constituted an ongoing supply agreement, and falsely asserting that customers could not return unwanted goods or receive refunds. These practices reportedly spanned several years, beginning in November 2016, and targeted small and medium-sized businesses, including a retirement village and a childcare center.

One notable case involved a small business in New South Wales that received multiple unsolicited deliveries of toner cartridges. Despite the business's requests to cancel further orders, Beacon continued to contact them, asserting that the orders were confirmed. The ACCC argues that the business had the right to return the unwanted goods and receive refunds.

The ACCC is also taking action against Mr. Warren Skry, the director of Beacon, alleging he was knowingly involved in the companies' misconduct. The commission is seeking various legal remedies, including penalties and injunctions against Mr. Skry.

Both Beacon and Zandox were placed into liquidation in April 2023, necessitating the ACCC to seek court approval before initiating these proceedings. Zandox is alleged to be a rebranding of Beacon, continuing to sell similar products.