FAI Home Security class action

FAI Home Security and its linked credit provider FAI Finance Corporation sold more than 100,000 home alarms to consumers throughout Australia. In selling the alarms various representations, including that the alarm was "state of the art" were made. Using highly developed sales techniques and focusing on working class areas, low quality alarms were sold at high prices.

The action

In 1999 Maurice Blackburn issued a class action in the Federal Court against FAI Home Security and FAI Finance Corporation on behalf of consumers who bought the home alarm in reliance on the representations. The claim alleged that various representations made during the sale of the Home Security Guard I and II alarm systems were misleading and deceptive.

Settlement

On 18 April 2001 the Court made orders approving the settlement of the class action on behalf of Maurice Blackburn's clients.  Our clients received a refund of most of the purchase price of the alarm systems plus all legal costs.  This representative proceeding was a cost-effective way to ensure that a large number of consumers with relatively small claims could successfully obtain damages.

Supporting information