The ASBFEO works with a broad range of businesses to provide one-to-one assistance for business disputes, including referral to government support and arranging alternative dispute resolution.
A vocational training business had an equipment lease and services contract dispute with a global technology business regarding devices and a debt. The small business contacted us, and we helped to coordinate and manage correspondence between both parties.
By focussing on interest-based outcomes, the debt was significantly reduced, with the small business able to retain the devices and continue their business operations.
Contract cancelled without cancellation fee
A small business owner entered into a contract with a lead generation online business. She started with a dollar figure per month and kept increasing the amount per month, not realising this meant that each time she altered the amount per month she was entering into a new 12 month contract.
When she called the business to cancel the contract, which she thought was due to expire (after initially joining up for 12 months), she was told she could cancel but would have to pay out almost $4,000.
The ASBFEO contacted the online business and we were able to have her contract cancelled without the cancellation fee.
Advertising company waives outstanding invoice
A small business owner had a contract with an advertising company. The company used to contact him yearly to discuss his contract renewal, but this did not happen when the contract was due to roll in 2017. The small business owner felt that he was not provided with the opportunity to cancel the contract.
The most recent contract did not advise that there would be a follow-up call each year. The auto-renewal notice for 2017 was sent to two people; one no longer worked with the business and the other was not involved in the original purchase of the advertising and was likely not aware of the automatic renewal terms.
The advertising company waived the outstanding amount of $737 as a gesture of goodwill.
Business hires lawyer to improve contract
Whilst assisting two small businesses to resolve a contractual dispute, the ASBFEO was able to identify some confusing terms and conditions in the contract of the respondent.
Following suggestions from our office, the respondent hired a business lawyer to review their terms and conditions, and is in the process of making some changes to their business processes to be more transparent for users and customers.
Verbal contract resolved
When a small business owner registered an online inquiry, the online entity responded with a phone call. The small business owner was told she had to agree to buy the product she had enquired about on the spot, to avoid the offer being withdrawn.
The small business owner verbally agreed to the contract, for which she received a quote for several hundred dollars per month. On the same day, after discussing it with her business partner, she attempted to terminate the service via telephone conversation and email.
Despite the same day cancellation, the small business owner was told that when signing up to a contract over the phone, there was no ‘cooling off’ period.
The ASBFEO identified in the terms and conditions of the contract that the purchaser was able terminate the contract by giving the supplier 14 days’ written notice. Given the small business owner cancelled the contract within hours of verbally agreeing to it, the contract was able to be terminated without charge.
The small business owner was thankful for the help saying:
“I’d like to say that I’ve been really impressed by your services and I’m grateful that your company exists to help out the small businesses of Australia.”
Advertising contract refunded
A small business owner was contacted by an advertising company about an advertising opportunity.
During the phone call, the small business owner requested time to consider the advertising cost ($5,500) before agreeing. She was told the offer was only valid during that phone call and she needed to agree on the spot.
The small business owner reluctantly agreed and provided her business logo and pictures as requested. The advertising company guaranteed a draft of the advertisement would be sent for review within four business days.
When the draft wasn’t received by the agreed date, the small business owner requested her contract be cancelled. This request was denied as it fell outside the ‘cooling off period’ offered by the company.
As a result of the delays experienced by the small business owner, and the subsequent breakdown of the relationship between the parties, a full refund of $5,500 was requested.
The ASBFEO was able to negotiate changes to the advertisement that satisfied both the small business owner and the advertising company. The parties are now working on finalising the advertising.
Both parties expressed their gratitude for the intervention by the ASBFEO.
Advertising and website contract resolved
A small business owner wanted to increase her business’ online presence. She approached a digital agency and admitted she knew nothing about the online world and asked for help.
The agency sold her advertising designed to increase her business’ presence, as well as the building of her business website, but did not provide sufficient explanation of the services.
The small business owner signed a contract for the website build, but became disenchanted with the digital company, particularly once she understood there would be additional website hosting costs and other charges.
The small business owner tried to terminate the contract, but was unable as she had signed the agreement.
The ASBFEO contacted the digital agency and provided them with a greater understanding of their client’s situation. The agency agreed to either waive the additional hosting charges or terminate the contract with no further costs.
The small business owner chose to terminate the contract with no further costs and the issue was resolved.
Contract terminated without penalty
Following a cold call, a small business owner signed a six month contract with an IT services provider for advertising, search engine optimisation and a new website.
The small business owner was unhappy with the level of service provided as they were writing their own website content and the advertising had only resulted in a marginal increase in business.
The small business owner attempted to resolve the matter directly with the company, but there was no improvement to the service, so they sought to terminate the contract.
The company refused to terminate the contract without early termination fees and a pay-out of the remainder of the contract.
The small business owner then contacted our the ASBFEO for help.
The ASBFEO had previously negotiated with the IT company to have a designated contact officer to deal with disputes. As a result of this arrangement and their enquiries, the contract was terminated without any further fees to pay, saving the small business owner around $5,000.
Termination fee waived
A small business owner engaged the services of an IT provider.
When she realised the IT provider wasn’t able to effectively fulfil the required services, she attempted to cancel her contract, but was told she would be charged the remainder of the contract fees.
This IT service provider has not previously allowed the cancellation of contracts without a termination fee in such circumstances.
This time, after prolonged negotiation, they released the small business owner from her contract without any additional charges, saving her a total of $8,000.
Newspaper advertising overpayment resolved
A small business owner placed an advertisement in a local paper. The initial paperwork was the only form of invoice provided (as noted in the contract). The contract was for an initial period, but in smaller print, the advertiser was required to give four weeks’ notice to stop advertising.
The charge was taken from the business owners’ bank account via a pay system that did not identify the media outlet, but rather the pay system. The small business owner also used this same payment system for her security alarm.
Three years later the small business owner’s accountant suggested she was paying too much money for her security alarm and she started investigations.
She discovered she was still under contract to the local paper, even though she had never received any invoices or contract renewals. She contacted the outlet, but by this stage the business had changed hands. The new business owners had been given a list of all the people under contract, but had made no contact with them either.
The ASBFEO was able to help the business owner reach a resolution where the local paper paid back a large proportion of the monies paid since the end of the initial advertising period.
Advertising account re-activated
A small business owner reached out to our the ASBFEO following the de-activation of an advertising campaign.
The advertising company claimed the client breached the terms and conditions of the contract, but didn’t provide any information.
The small business owner attempted to reach out to the advertising company via their help page online, but received unhelpful automated email responses.
The ASBFEO contacted the advertising company and the account was re-activated.
The client said she’s ‘very grateful that I can now advertise again and provide career counselling services to those who need it’.
Resolution reached following mediation
A property developer signed an agreement with a telecommunications company to relocate a telecommunications pit (used as a distribution point for phone cabling), at the developer’s own cost.
The property developer signed the contract to avoid delaying the development. The developer later attempted to contact the telecommunications company to understand why he was required to pay for the shift of the pit when it was not necessary for his development, but in discussions was unable to resolve the issue.
The property developer was then invoiced $33,000 for movement of the pit.
The ASBFEO attempted to help the parties resolve the matter, which resulted in the Ombudsman recommending mediation.
The ASBFEO was informed that mediation was successful and a commercial resolution was reached.
Locating a solution
A franchisee purchased a second franchise, which included an existing lease of premises. However, the lease was terminated by the landlord. Due to a downturn resulting from COVID and no premises available to operate from, the franchisee sought to cancel the franchise agreement.
The franchisor did not want to terminate the agreement and wanted the franchisee to find a new location to operate from. The franchisee maintained they only purchased the franchise due to the location.
We worked with one of the State Small Businesses Commissioners to identify a mediator who could deal with both the franchising and lease issues in accordance with both the State and Federal legislation. The mediation led to an agreement between the parties to resolve their issues.
A thriving small business was approached by the state leaders of an internationally recognised dealership with an offer of working exclusively with them.
The small business owner saw this as a great opportunity and accepted the offer, and within a year, it became one of the most successful franchises in the state.
However, given intense competition in the industry, there were a variety of factors that led to the early termination of the franchise, and an unsuccessful mediation was held between the parties.
The ASBFEO arranged a case appraisal and conciliation that resolved the matter and reinstated the franchise.
Agreement reached over business name
A small business franchisor trademarked his business name. He then found that another business had opened in the same industry and was operating under the same name.
The other business had registered the business name with the Australian Securities and Investment Commission (ASIC) and did not understand why they could not use the name.
Before contacting our the ASBFEO, both parties had sought legal advice, but had not reached a resolution.
The ASBFEO approached the business owner and explained that registering a business name with ASIC did not give a business ownership of a name.
The ASBFEO explained that trademarking a name or logo was the only way to get intellectual property rights over that name.
A resolution was reached when the business owner agreed to change his business name to one that was acceptable to both parties.
Successful negotiation with leasing agent
The ASBFEO received a request for help from a small business owner running a food outlet in a shopping centre.
He had been significantly affected by the landlord’s decision to position a national franchise selling similar products immediately next to his business.
As a result, his sales fell significantly and he found his shop was no longer viable.
In addition, he had extra cleaning charges under his lease that he believed to be unfair.
Following our intervention, the leasing agent contacted the small business owner and negotiated a lower rent and waived the additional cleaning charge.
Shopping centre agrees to pay fit-out cost
A small business signed a commercial lease and fit-out deed with a shopping centre.
When the small business owner submitted an invoice for the $70,000 fit out cost to the shopping centre, the centre advised it would no longer pay that amount, instead offering $40,000.
The ASBFEO contacted centre management at the shopping centre and it agreed to pay the $70,000, which enabled the small business owner to pay the sub-contractors she engaged to complete the fit-out.
Payment plan enables outstanding payment to be made
A small business owner had an ongoing payment dispute with another business, which lasted over six months. The other business had undergone a restructure and was unable to commit to pay.
The ASBFEO was able to arrange a payment plan over a four week period to have the outstanding $8,500 paid.
The small business owner was pleased with the offer of payment plan, describing it as “bloody brilliant”.
Outstanding payment settled
The ASBFEO was contacted by an ice cream supplier who supplied just over $5,000 of ice cream to another business. The supplier had been chasing payment for over a year.
Following the involvement of the ASBFEO, the business owing the money agreed to pay it back in two instalments.
Sole trader received outstanding payment
A sole trader contacted the ASBFEO about an outstanding payment of $1,875 from a development company. The ASBFEO contacted the developer and the company agreed to make the payment.
Outstanding invoice waived
A small business owner lodged a dispute with a company about a three month social media campaign contract.
At the end of the contract period, the contract auto-renewed, leaving him with an outstanding invoice for $786 for a fourth month he did not agree to.
The small business owner found it very difficult to contact the company directly to resolve the issue as all communication was through offshore call centres, and none of the emails had contact names or phone numbers attached.
Each time the small business owner contacted the company, he would have to explain his issue over again as previous conversations were not recorded.
After disputing the invoice for eight months and continually receiving invoice and debt collection notices, the small business owner turned to the ASBFEO for help.
The ASBFEO contacted the company and they agreed to waive the outstanding invoice.
The small business owner said: “A sincere thank you to the Small Business Ombudsman for the time and effort taken to help our business.”
Commission payments made
The ASBFEO received a request for assistance from a business regarding their contract with another business.
The complainant advised they were not receiving commission payments owing under the contract in place between the parties.
The complainant had been denied payment due to an issue around incorrect paperwork and docket sales.
On review of the contract, the ASBFEO was able to identify that the contract between the parties only allowed for payments to be deferred, and did not stipulate that payments could be withheld due to administrative issues.
The ASBFEO wrote to the business to seek feedback. Although the business did not respond directly, it began making payments as per the contract.
The complainant was thankful for the assistance.
Clothing company paid
A small business owner who ran a clothing company overseas was underpaid around AUD $7,000 by an Australian-based business.
Following involvement by the ASBFEO, the company started to make the payments, the first being roughly AUD $500.
The small business owner thanked the ASBFEO for our involvement.
Contractor receives outstanding payments
A contractor working through a recruitment agency was owed $29,000 in outstanding invoices from a government department.
The contractor contacted the ASBFEO who was able to help the parties resolve the issue with the contractor receiving the full amount owing to him.
Government decision overturned
A small business reached out to the ASBFEO after a decision by a government department affected how this business could engage contractors.
The ASBFEO contacted the government department which agreed to overturn the decision.
The director of the business says “Now we can continue to contract to these contractors, which is a big relief to them and us - especially during this time of year before Christmas and all the big end of year household bills. We’re very thankful for your input ASBFEO!”
Letter of demand results in payment of outstanding invoice
A small business owner contacted the ASBFEO about outstanding invoices for services provided.
The ASBFEO advised the small business owner to write a letter of demand, in the first instance.
The letter enabled him to retrieve most of the money owing to him. The ASBFEO then contacted the other party about a further $6,500 and the small business owner was paid the amount.
The small business owner was grateful for our help: “I can’t stop thinking about all the money I have given up on over the years because companies just won’t pay. You don’t know what this means to me, thank God for you guys.”
Letter of demand results in return of deposit
A small business owner paid a $20,000 deposit for a ute. After a series of unfortunate events, the small business owner requested the deposit back from the dealership, but they said they had used the money.
The ASBFEO helped the small business owner write a letter of demand, which resulted in him receiving his deposit back.
Writing a letter of demand is a critical step in the dispute process and can produce results quickly and efficiently.
Restoring business after a hack
A small businesses social media account was compromised by the ‘Lilly Collins Hack’. This business account was also linked to a personal account, a primary administrator for the business account, and several linked secondary administrators. Due to the interconnected complexities of the business account, hackers were able to gain access to the personal account, while also controlling the business account, marketing campaigns, and linked credit card information. The businesses social media account was renamed ‘Lilly Collins’.
We provided information to the social media platform who immediately commenced a review. The hackers were removed from the account and unauthorised expenditure from the account (while it was compromised) was returned in full to the small business. The small business was also alerted to fraudulent ads about the business and provided information on how to remove these ads.
The account was fully restored, secured, and returned to the grateful small business.
Full refund received for unwanted advertising
A small business owner had an advertising app on his phone that had not been active for over a year.
When the small business owner bought a new phone, the advertising account was inadvertently activated, and he received a bill for over $1,000 for the month.
He deactivated the account, but again received another bill for nearly $2,000.
The small business owner contacted the advertising company a number of times to attempt to resolve the issue but was unsuccessful.
The ASBFEO contacted the company about the issue and the small business owner received a full refund for the charges.
The small business owner was very grateful for our assistance saying, ‘That is fantastic news! I can’t thank you enough for working on our behalf for this resolution. We would never have been able to get anywhere without your help. Thank you so much.’
Online directory listing and outstanding invoice cancelled
A small business owner contacted the ASBFEO after being cold called by an online directory company.
The small business owner agreed to the listing as he thought he was renewing a Telstra listing and was invoiced $1,095. When he received the invoice, he realised his mistake and attempted to cancel the listing.
The ASBFEO helped the small business owner to cancel both his listing and outstanding invoice and be added to their ‘do not contact’ list.
The online directory company agreed to consider recording calls to verify agreements, in order to avoid disputes such as this in the future.
Refund for damaged goods
The ASBFEO was contacted by a business about damaged concrete candle pots received from another business.
When the business received the $700 order, some of the pots were damaged, but she was unable to get a replacement or refund for the damaged goods.
When the ASBFEO contacted the seller, they immediately provided a refund for the damaged pots.
The small business owner said: “I want to thank you for helping me out so quickly, I was amazed at how quickly things worked out - this has been going on for a long time. Thank you for being so helpful and for enabling me to get what was rightfully mine.”
Refund received from material supplier
A small business purchased material for leotards for a gym team. The outfits all became worn out after the first couple of wears.
The small business owner wasn’t able to reach a resolution with the material supplier.
The ASBFEO contacted the supplier and they offered a refund of $2,211 once the outfits were returned.
Website updated to avoid confusion
The ASBFEO received a request for help from a small business owner whose business is based inside a hospital.
The small business owner advised the ASBFEO that he believed another business of the same nature was misleading customers, as wording on their website suggested their business was located at the hospital. As a result, the small business owner felt that consumers often mistook the other business for his business.
The small business owner attempted to resolve this matter directly with the other business, but was unable to get in contact with them.
The ASBFEO contacted the other business, who made immediate changes to their website to make it clearer that their business is not physically located in the hospital.
Subcontractor able to get on with her business
The ASBFEO was contacted by a medical professional who works as a subcontractor.
When she left her former practice, her name and details were not removed from the website and signage. This meant that patients were having trouble finding her at her new practice and were being directed to her former practice which she had left more than 12 months prior.
The subcontractor tried for seven months to get the former practice to update the details.
The ASBFEO contacted the former practice and the website has now been updated and the signage is being replaced.
Resolution reached with printing company
A small business owner contacted the ASBFEO about a range of issues with a printing company. Following our involvement, the printing company agreed to work through the issues directly with the small business owner.
The printing company contacted the ASBFEO recently as they were unable to negotiate a settlement with the small business and were seeking advice on next steps.
The ASBFEO encouraged both parties to try again to work it out instead of resorting to mediation.
After multiple phone calls with the parties, they agreed to share the remaining value of the dispute ($2,000 each), rather than attending mediation.
The parties also agreed on a way forward to keep their relationship amicable. The printing company will appoint a case manager to ensure lines of communication are always clear with the small business owner.
The small business owner was grateful for the help: “We would like to say thank you. Without your intervention we wouldn’t have been able to end the dispute in this win-win situation.”
Under the Australian Small Business and Family Enterprise Ombudsman Act 2015, The Ombudsman may publicise, in any way that the Ombudsman thinks appropriate, a businesses refusal to mediate.
DPG RESOURCES PTY LTD