The Australian Competition and Consumer Commission (ACCC) has initiated legal action against Beacon Products, a company accused of engaging in deceptive practices related to printer cartridges in Australia. Despite the company being placed into liquidation, the ACCC is pursuing legal action against Beacon Products and its director, Warren Skry.
The ACCC alleges that Beacon and Zandox, under the direction of Warren Skry, engaged in unconscionable conduct by misleading customers and exerting undue influence to make unsolicited sales of printer cartridges and cleaning products to businesses across Australia, violating the Australian Consumer Law.
The companies are accused of deceiving customers by falsely confirming orders that had not been made, misleading customers into ongoing supply agreements, and denying customers the right to terminate agreements or receive refunds for unwanted goods. These alleged breaches of the Australian Consumer Law spanned several years, dating back to November 2016.
ACCC Deputy Chair Catriona Lowe expressed concerns over the impact of such conduct on small and medium businesses, highlighting instances where businesses were misled into accepting unwanted product orders and faced difficulties in returning the goods. The ACCC’s action aims to prevent financial and emotional stress on business owners and staff.
One specific case cited involved a small business in New South Wales that received multiple deliveries of toner cartridges from Beacon without a formal agreement in place. Despite the business’s attempts to cancel future orders and return unwanted goods, Beacon allegedly insisted on payment and refused to accept returns, contravening the business’s right to refunds.
Notably, this is not the first time Warren Skry has faced legal action. In 2004, the ACCC took court action against Skry and his previous company, Globex Systems Pty Ltd, for similar deceptive practices involving unsolicited goods and false representations to businesses.
The ACCC’s current legal action seeks declarations, penalties, disqualification orders, and injunctions against Beacon and Zandox, as well as penalties and costs against Warren Skry. The case underscores the importance of upholding consumer protection laws and holding businesses accountable for engaging in deceptive practices.
David Richards, an experienced technology journalist with a background in investigative reporting, has covered the evolving landscape of technology for over three decades. His insights into the impact of technology on businesses and consumers provide valuable context to the ongoing developments in the industry.
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