We advise you to check the status of the OcRug Store located at Noosa Heads, Queensland before proceeding any further. The previous owner was unaware that the company had been registered with the Australian Securities and Investments Commission. There are serious concerns about the validity of the company’s registration because it has not been able to establish a trading record or show ongoing financial activity. Despite this, the store continues to trade unprofessionally because there are no recognised customers or ongoing sales.
The next step in this report relates to the lack of a consumer complaint about the premises of the OcRug Store. There were no conditions of sale clearly posted and no sign indicating that the retail outlet was shopfronted in accordance with the Fair Trading Act 1990. There was no indication from the registrar that the business was registered with the ACL. It is apparent from the information that this business is a front for another retail venture. There are serious concerns about the possibility that this retail outlet may fall into the category of ‘unauthorised operation’ under the Trade Practices Act 1980.
There are serious concerns about the validity of the business name ‘OC Rug Store’ because it is not registered with the ACL. There is no direct evidence that there are customers in this location. The next step in this report deals with the lack of trading records. There are no business accounts for the past two years that have been collected. The registrar has confirmed that the business is insolvent and unable to establish any trading reputation.
There are serious concerns about the validity of the details provided by the registrar for the business ‘OC Rug Store’. It is established that the businesses details were initially registered by this store as an ‘authorized dealer’. This meant that the business was able to buy wholesale products that would be sent to this address. However, it is not known whether any retailing took place between this address and the ‘OC Rug Store’. There is no evidence of this happening. There is no record of the sales from this point in time.
From the above information, it is established that the retailer of the items sold is not a part of the sales process from an authorized dealer. It is also not clear where the merchant obtained the wholesale products that they sold from this business. The last trade transaction was from June 2010. It is clear from this period that the company had no direct trading with consumers. There is a lack of documentary proof that a retailer did in fact purchase goods from this company.
Based on the above information, it is apparent that the OC Rugs Store is not a part of the retailing chain. Therefore, the validity of the products sold cannot be determined. It is suggested that this company operates on a non-retailer basis. There is a possibility that this could be a middleman engaged in retailing but not part of the chain of retailers. There is a risk that this could also be a fraudulent business pretending to be an authorized retailer of Oriental rugs using the name of an established and recognized company.