Du Magic v Green Acres
Du Magic v Green Acres
The Greenacres franchise case is not the first to hit New Zealanders and disillusion New Zealanders some of who have immigrated to New Zealand.
In 2005 - 2006 over 60 New Zealanders were hit by a similar scam. The were targeted nation wide and people from Auckland to Invercargill were effected. Investors purchased a car scratch and paint repair franchise. At the time, the Commerce Commission, Serious Fraud Office and Government, failed to investigate and support the victims who have had to live with their losses with no guarantee of recovery.
The devastation of victims losing their homes, family break up and severe depression did not encourage any support from the governing agencies in the same manner as we are witnessing currently with Green Acres.
Du Magic, an Australian company came to New Zealand in 2005 and duped good hard working individuals into a scam that almost mirrors the current Green Acers fiasco. The Australian company did not belong to the franchise association.
The Du Magic group approached the Negotiator Limited for assistance and the only affordable recourse was to broaden the case and represent Australian victims and lay a complaint with the Australian ACCC who are currently in negotiations which we believe will involve refunds. The ACCC were not interested in New Zealand victims alone and there are still no guarantees that the ACCC will ensure recovery for New Zealand Victims.
The investigation by the Negotiator Limited has been done with minimal resources with many people donating their time to progress mattes as legal representation was unaffordable as is obviously the case for the Green Acres Group.
The Green Acres case has been a bitter pill to the Du Magic group as they witness governmental support that they were declined.
“Peter Buckley “ the group coordinator said from his home in Whangaparoa today “This is very disappointing as we struggled desperately to get help and most of our franchises were priced at over $30K” Mr Buckley went on to say “ We have had to fund trips to Australia to meet the ACCC before we could get any action, which is appalling, but then it wasn’t an election year”
The Negotiator ltd has written to the Minister this requesting assistance in dealing with the ACCC. As it is holiday time there has been no response as yet but we trust the Minister is committed to work against scams that are destructive and embarrassing to New Zealand