Media Release: PARENTS WARNED ABOUT AGGRESSIVE SALES TECHNIQUES

FROM THE MINISTER FOR CONSUMER AFFAIRS

DATE: Sunday, February 3, 2008

PARENTS WARNED ABOUT AGGRESSIVE SALES TECHNIQUES

Victorian parents are being warned to watch out for companies using aggressive sales tactics to sell expensive mathematics programs.

The Minister for Consumer Affairs, Tony Robinson, said complaints about these companies to Consumer Affairs Victoria had increased steadily over the past three years.

“The companies sell programs aimed at primary and secondary school students struggling with mathematics,” Mr Robinson said.

“Although they sell across the board, their biggest impact has been on disadvantaged families, many of whom find themselves in serious debt as a result.

“These programs cost about $6000, however as they are often financed through a linked credit contract with interest rates as high as 24 per cent, the actual cost of the program is often closer to $8-$10,000.”

Mr Robinson said aside from the expense, the high-pressure sales tactics used to sell the products were very concerning with parents often feeling coerced into signing up.

“Some companies also conduct “tests” of the child as part of the sales pitch which parents should not give too much credence to as they will almost always show that the child needs extra help and are designed to sell the software.

Mr Robinson said the pressure sale almost always occurred at the consumer’s house under the ruse of a free demonstration or assessment of their child’s ability.

“Consumers approached by these companies should not sign anything on the spot and instead speak to their child’s teacher about their learning needs,” he said.

“Like with any other big purchase parents should shop around to make sure they’re getting the best deal as there may be other less expensive options more suitable for your child.

“Consumers who do buy one of the expensive programs and have second thoughts should cancel the contract in writing during the 10 day cooling off period and get their money back,” Mr Robinson said.

Anyone who feels they have been pressured into buying one of these maths tutoring programs should contact Consumer Affairs Victoria on 1300 55 81 81.