Radio Rentals, which is owned by Thorn Group Ltd
(ASX:TGA), is facing a class action in the Federal Court from thousands of its customers.
Thorn Group has responded to media reports and confirmed it hasn’t yet been served with a statement of claim.
Radio Rental allegedly engaged in ‘unfair and unconscionable’ practices through its ‘Rent, Try, $1 Buy’ deal – where the customers rent items such as TVs and fridges for some time, before owning them.
Many of the retailer’s customers allegedly ended up paying up to four times than what the items are worth.
The plaintiffs are represented by Maurice Blackburn Lawyers, and Thorn Group says it will vigorously defend the court proceedings.
Yesterday, Thorn Group shares closed steady at $1.32, which is a six-month low.