Seventy newsagencies were represented in a meeting held in Melbourne yesterday to discuss Bill Express and the company’s removal of marketing subsidies which it used to promote the service into newsagencies. One hundred newsagents apologised in advance of the meeting for not being available to get away from their shops.
The newsagent-only meeting opened with three brief presentations:
- A summary of activity around Bill Express relating to its future.
- A summary of ACCC investigation into matters around representations to newsagents prior to their signing of agreements to take on Bill Express.
- An outline of proposed Federal Court action commenced by a group of newsagents convened through NANA and being prepared by Melbourne based QC Charles Sweeney and briefed by former General Manager of the ACCC and Barrister Hank Spier. The proposed court action is to focus on three respondents: Bill Express, Technology Business International and the Australian Newsagents’ Federation.
What followed was a discussion about the various options available to newsagents including the legal action proposed by the ANF against Bill Express over the contracts newsagents have with the company.
Some newsagents spoke to their specific circumstances, highlighting the difference in agreements and terms around Bill Express and related contracts with newsagents. Others spoke about the issue of due diligence of the agreements before they were put to newsagents. Others spoke to their contact with the company over the last six months and the challenge of accessing information necessary to them protecting their interests.
Concern was raised as to why VANA had not acted on this matter for Victorian newsagents. Ron McKinnis, VANA Chairman, spoke to the meeting, took on board the concerns raised about VANA apparent inaction and committed to taking these back to VANA.
While newsagents attending were angry and hurt at the serious financial situation they are in over Bill Express, the meeting was cordial, productive and co-operative.
All bar one person attending the meeting voted to support the Federal Court class action which has been commenced by NANA. The details of these newsagents have been provided direct to the legal counsel for inclusion in the list of newsagents prepared to financially support the action. The legal team will be in direct contact about progress of the matter through the Federal Court and assistance they may require – either financial or evidentiary as necessary.
We anticipate having a process established for other newsagents who want to offer direct support to the legal team in the same way.
The benefits of the NANA instigated Federal Court action already on foot over the proposed ANF action, as put to and discussed at the meeting yesterday are:
- It is independent of any party which may have a conflict in this matter.
- Work on the case is well advanced.
- Newsagents are not required to join any association to be part of or to support the action.
- No Association is controlling the agenda or briefing legal counsel.
In the course or organising the meeting Adam de Jong and myself took many calls from newsagents in tough circumstances. There were tears of stress over the financial hardship they now find themselves in over Bill Express unilaterally changing the terms of their agreement. While these stories were difficult to listen to, they reminded us of the personal impact the actions of Bill Express is having. They redoubled our commitment to yesterday’s meeting and ensuring that newsagents achieve a just outcome from the Bill Express mess.
How do we sign up and how much does it cost
Mark & Adam
A big thank you for your hard work on this issue. I have been struggling with what to do and who to trust. I am glad to hear that you have joined with the NANA inititive, as a united front makes the decision easy as to who to support.
For us who could not be at the meeting, how do we register our support.
They have extended the trading halt to Monday. Weekend off eh chaps?
Just another thought, I have been speaking with a couple of other newsagents earlier in the week about their situation with BXP, and to my surprise they had done nothing. Why? Because they don’t know what to do, and what the ramifications will be. They are still paying the rental; and neither was sure how to stop it.
My partner contacted BXP, regarding the change in arrangements and was told that someone would contact us in a week. No response. So we made the decision and stopped our direct debit. I then called BXP when I received my letter demanding payment and advised that I would not be making any more payments, as they were no paying the rebate as stated in my agreement. In the last couple of days I have changed my Eftpos facilities, and today will completely remove the BXP equipment. But what do I do with it? Put it in a box and wait for the class action to be completed, or request BXP to collect.
Would it be possible to get some general advice that could be distributed to newsagents on how they might handle the situation, the Do’s & Don’ts? As I think we are all struggling with what to do! Thanks
Hello everyone, I urge you to write to the ACCC if not have done so.
Seth
Perhaps you should also write to the ASX. If 40% of your distribution network has collapsed and you have not infomed the market – are you in breach?
Hi all – I’m Liz and I’m from Queensland!!! (Couldn’t resist saying that.) My partner and I have just taken a leaf out of “the Bill Express handbook” and have announced our own suspension today – suspension of the direct debit for the so-called equipment rental. Gee it felt good signing the suspension authority at the bank!! We have written to the ACCC and had a reply to the effect that they are looking into the matter and will contact us if they need further information. Next Tuesday we are off to the meeting here in Bne arranged by Qld Newsagent’s Federation regarding the Bill Express debacle. We only joined Bill Express in May 2005 after holding out for the first couple of years. We were also assured that ‘you will never be out of pocket’ and ‘what have you got to lose’ etc etc. Today’s further trading suspension by Bill Express was no surprise as it again takes them closer and closer to the next drawing date for the monthly rental and will again top up their coffers by $1M to $2M – perhaps they will need this injection of funds as we could not access $20 Telstra recharge stock yesterday and $30 Optus recharge today. Can’t wait to see what happens as newsagent legal action gains momentum – let’s all stick together for once and go for it!!!!!!!
Hi Helen, Danni
Most people I know have stopped payment & boxed up the hardware. I’m starting to hear more cases of “final notices” arriving.
I wonder when Telstra & Vodaphone will pull the plug….
As much as I don’t want BXP top go under yet (it’ll make the court case more difficult),
I, like many, simply can’t afford to allow these amoeba to steal $550 PM from us. It’s more than just a matter of principle.
You can contact nana at
Phone: 02 9744 0400, Fax: 02 9744 0676 or Email: nana@nana.com.au. Newsagents Association of NSW & ACT Ltd Level 1, 36 Victoria Street, (PO Box 515 Burwood …
The fighting fund contribution is $495.00
This is paid into a trust account held by McNally’s Solicitors.
Any change will come back to us all.
I’m just waiting till there’s been a result in the court case.
Most people are quietly confident, but nothing is 100% guaranteed.
I’ve heard from a trustworthy source that McNally’s are a good firm. They have won several cases on behalf of newsagents.
They are also of good ethics, i.e. some lawyers will always tell you that your case is a strong one, then say “sorry about that, & here’s the bill” if they lose the case.
McNally’s are not like this. They will come right out and say ‘I don’t think it’s a strong case: do you still want to go ahead?’
In this case, they genuinely believe that the case is a strong one.
As for the ANF:
That last newsletter, a 4 page piece of work, was something to behold now wasn’t it?
I could see a wild moggy, with its leg caught in a gin trap. Hissing & spitting & growling; just knowing it could soon have its head clubbed & throat cut.
In it up to its eyeballs. I believe that when the truth comes out, it could spell the end. No wonder NANA wanted nothing to do with them.
I am advised that no further fighting funds are required right now and that the legal team will ask for funds as necessary.
Mark, does that mean that any newsagent who wish to join the class action now do not have to contribute the initial $495 ?
Bario,
The barrister told me that they do not need additional funds right now. They will ask for it as the case unfolds. I’d hope to see a registration process available this week.
The nature of a class action is that everyone in the class is represented. Newsagents with Bill Express would be part of the class.
Mark