Case expected to take years.
On Wednesday Appliance Retailer reported that law firm Maurice Blackburn launched a class action in the Federal Court of Australia seeking compensation for over 200,000 consumers who entered into ‘Rent Try $1 Buy’ leases with Radio Rentals between 28 March 2011 and 29 March 2017.
Now Thorn Group, parent company of Radio Rentals, confirmed that a statement of claim had been served on Thorn Australia Pty Limited, a subsidiary of the company and the Australian credit licensee under the National Consumer Credit Protection Act 2009.
A statement to the Australian Securities Exchange released on Thursday reads: “Thorn Australia will defend the claim in the ordinary course of the class action process. It is anticipated that the process could take a significant length of time, perhaps years, to run its course.
“The company will update the market if there are any further material developments.”
The case, commenced by Wagga Wagga mother-of-five Casey Simpson, alleges that Radio Rentals engaged in “misleading or deceptive conduct and/or unconscionable conduct, including unfair contract terms”.
Simpson is claiming compensation for herself and others on the basis that Radio Rentals customers paid excessive amounts on their Rent Try $1 Buy leases and that contrary to Radio Rentals’ advertising, customers were not entitled to buy the rented goods for $1.
The matter involves Radio Rentals stores owned and operated by the Thorn Group in states other than South Australia. The South Australian Radio Rentals brand is not associated in any way. In South Australia, Thorn Group stores trade as Rentlo Reinvented.