New jersey store owner David Whelan is set to file a complaint against some of the state’s biggest supermarkets over their involvement in the online fraud known as “tokens” scam.
A group of retail owners and retailers have launched a class action lawsuit against the supermarkets, alleging that they were complicit in the operation and profits of the scam.
“It’s the latest and the most significant case to come out of the NSW Government,” said Mr Whelans lawyer, Chris Smith.
The group, including a number of retail businesses including A&C, Cargill and The Gap, will allege that they paid hundreds of thousands of dollars in fraudulent proceeds to a number, including online fraudsters, in exchange for items such as fake jerseys and T-shirts.””
I’m sure there will be a lot of legal action and they will lose.”
The group, including a number of retail businesses including A&C, Cargill and The Gap, will allege that they paid hundreds of thousands of dollars in fraudulent proceeds to a number, including online fraudsters, in exchange for items such as fake jerseys and T-shirts.
“As the NSW Premier said last year, NSW has no more T-shirt shops,” Mr Whelpans lawyer said.
“We are now suing more than 200 retailers in NSW, who have been operating without any regulations, without any oversight and without any enforcement.”
There is a lack of accountability and the NSW Attorney-General has not put in place any guidelines, policies, or processes to prevent this.
“The Premier has previously indicated that the NSW Police would not be pursuing cases against the major retailers involved in the scheme, despite the ongoing investigation.
In the complaint, Mr Whelps claims that the retailers involved “watered down” the legitimate sales in exchange “for a small percentage of fraudulent proceeds”.”
The retail business community has been left behind by the NSW government, and we’re asking them to come back and put in the same standards and the same policies they should have put in in the first place,” he said.
The groups claim that the retail businesses involved have been paid by online buyers from the fraudsters in exchange of fake jerseys or T-Shirts.”
When you’re selling a product that has a price of $40 for a jersey, and you’re offering $40 in merchandise to a $60 customer for $100, you’re not paying the full value of that product, and that’s what’s happening in this case,” Mr Smith said.
Topics:consumer-finance,business-economics-and-franchise-business,consumer-protection,law-crime-and‑justice,consumer,fraud-and_consumer-safety,sri-lanka,newcastle-2300,nsw,vicSource: News Corp Australia