Minister’s warning to rainwater tank sellers

As Brisbane adapts to level five water restrictions, Fair Trading Minister Margaret Keech has warned businesses not to mislead consumers about the true cost of rainwater tanks.

“The Office of Fair Trading has taken action against one business caught misleading people about the real price of rainwater tanks,” she said.

“We have forced one company to print a retraction and amend its website after it advertised a ‘free water tank’ after state and local government rebates.

“The company’s advertising also claimed the government rebates had only ‘five weeks left’ to run.

“These advertisements were false and misleading about both the price and the availability of Queensland Government and council rebates.

“With increasing water restrictions and the demand for rainwater tanks skyrocketing, it is vital businesses don’t lead consumers down the garden path, misleading them into believing they can get something for free when this may not be true.

“Misleading consumers will only do damage to consumers’ confidence in the industry as a whole.

“The Office of Fair Trading has received 23 complaints since 1 July 2006 against rainwater tank sellers, most relating to installation, quality or warranty issues.

“When advertising rainwater tanks, businesses should be careful not to:

·advertise their product is free when in fact rebates differ with the size of the tank, and installation costs also need to be considered;

·claim the rebate schemes such as the Queensland Government Home WaterWise rebate will end soon, when it is anticipated to continue until June 2009; and

·state exact amounts for local government rebates, as the amount can vary between the different councils and shires.

”Businesses should also be upfront and honest about waiting periods if there will be a long delay in delivery.

“Businesses can be prosecuted under the Fair Trading Act 1989 if they engage in misleading or deceptive conduct, with fines of up to $40,500 for individuals and $202,500 for corporations.

"The Beattie Government takes complaints about false and misleading advertising, faulty products, installation and warranty issues in relation to rainwater tanks very seriously."

The Office of Fair Trading has produced the Installing a water tank fact sheet to inform consumers about shopping for a rainwater tank, the rebates on offer and avoiding dissatisfaction with tanks and installation.

To get your free copy visit www.fairtrading.qld.gov.au or call 13 13 04.

Media contact: Joanna Whitaker 3224 2005 or Tim Goodwin 3119 0062