Removalist business CBD Movers is facing court over allegations it relied on unfair contract terms to avoid responsibility for damaged goods and service delays.
Consumer Affairs Victoria (CAV) alleges Shashi International Pty Ltd, trading as CBD Movers, used contract terms that restricted customers’ rights to claim compensation and allowed the business to pursue disputed debts.
CBD Movers operates a nationwide network promoting a 'fast, affordable and stress-free' service.
But many Victorian customers have alleged the company blocked their claims for damage and delays, and aggressively pursued them for disputed debts.
CAV alleges CBD Movers required customers to report damage within 24 hours and denied refunds for thousands of dollars’ worth of damage caused by its removalists.
CBD Movers also allegedly gave consumers false or misleading information about their right to compensation, and how long they had to make a claim.
CAV Director Nicole Rich said removalists who take advantage of Victorians face significant penalties under the Australian Consumer Law.
‘Moving house can be hugely stressful. Most removalists make it easier by providing a professional service, and the right redress if things go wrong,’ she said.
‘Removalists who rip people off, whether by signing them up to unlawful contract terms, overcharging or refusing to accept liability, can expect to face legal action.’
CAV’s legal action follows a public warning it issued in 2023 after receiving 89 complaints.
CAV alleges that CBD Movers breached the Australian Consumer Law by misleading customers about their rights and using unfair contract terms to:
- limit refunds for delays, damage and loss
- restrict customers' ability to make claims
- shift liability onto customers who assisted with their move
- allow the company to decide if a refund would be paid, and how much
- allow the company to pursue disputed debts and recover collection costs
- allow the company to report customers to credit agencies over non-payment.
Maximum penalties under the Australian Consumer Law for these breaches reach $50 million. The case will be heard in the Federal Court on a date to be set.
For more information about your rights if things go wrong, go to Products and services.