Business Practices Committee Report 67

On 17 August 1998 the Committee wrote a letter to the "Manager" of Zen-Corp at the address in the advertisement. The functions of the Committee and the provisions of the Harmful Business Practices Act were briefly outlined. It was dated in the letter that the style of the Committee is one of cooperation rather than being confrontational. It was pointed out to the addressee that the Committee often received complaints about advertisements that could be regarded as misleading and thus harmful business practices as defined in section 1 of the Act. In most cases the advertisers did not plan to mislead consumers and were quite willing to amend their advertisements.

It was pointed out that the words in the advertisement

"Our methods are a direct physical approach. No letters of demand. No lengthy court cases. No wasted time. We do whatever it takes to get your money",

could mean only one thing and that is the extortion of money by threats of/or actual physical violence. If this was the case, the advertisement clearly constituted a harmful business practice. The addressee was requested to furnish the Committee with an amended advertisement before 31 August 1998. It was stated that failure to do so would probably lead to a formal investigation, as set out in the letter, into the business practices of Zen-Corp.

The letter was faxed to number 011-323-1005 at 07h49 on 17 August 1998 and the original was posted to Zen-Corp. An official of the Committee received a call from Mr Saber (Saber) at 09h55 on the same day. Saber was quite upset and said inter alia that he could advertise in any way he wanted to. The official again tried to explain the provisions of the Ad to Saber. At the end of the conversation it was agreed that Saber would meet with the official at the offices of the Committee at 10h00 on 27 August 1998.

On 25 August 1998 the letter addressed to Zen-Corp was returned by the Post Office marked "Address insufficien" (sic).

At 10h15 on 27 August 1998, the day of the proposed meeting, the official received a call from a "Mr Thomas" (Thomas). Thomas explained to the official that Saber went to Austria to take money to a client for whom he collected debt and that he (Thomas) was to attend the meeting. Heavy traffic allegedly prevented him from doing so and he agreed to meet the official on 12h30 on 31 August 1998. The official told Thomas that the Committee's letter dated 17 August 1998 was returned by the Post Office. He was asked what the physical address of Zen-Corp was and he gave the address as 52 Bakker Drive, Houghton.

Neither Thomas nor Saber turned up for the appointment on 31 August 1998. The Committee met on 1 September 1998 and resolved to afford Saber the opportunity to address the Committee on 10 September 1998. In a letter from the Committee dated 2 September 1998, he was requested to call the secretary of the Committee to arrange for a suitable time to address the Committee. It was pointed out to Saber that failing to attend the meeting of the Committee on 10 September 1998 would probably result in him being summonsed to do so at a next meeting. The letter was also fared to him at 09h14 on 2 September 1998. Zen-Corp did not respond to this letter.