Urban Rampage Banned from Using Centrepay After Exploiting First Nations Customers
The Australian Securities and Investments Commission (ASIC) has permanently banned outback retailer Urban Rampage from using Centrepay, a credit service that allows customers to purchase goods and pay them off through deductions from their Centrelink payments. This decision marks the first final stop order issued under design and distribution obligations introduced in 2021.
ASIC's investigation found that Urban Rampage targeted First Nations customers on low incomes who were receiving Centrelink payments. Many of these customers found themselves without money to pay for essentials after entering into Centrepay credit arrangements at Urban Rampage stores.
"It is unacceptable for businesses to use credit-like facilities in a way that places vulnerable customers into hardship," said ASIC Commissioner Alan Kirkland.
Urban Rampage has indicated it will appeal the decision and may launch a legal challenge under the Racial Discrimination Act. The retailer argues that the ban infringes on the autonomy of First Nations consumers and leaves them without alternatives to buy clothes and other items. They also accuse ASIC of "running an inherently racist test case of its powers and using First Nations people as guinea pigs."
Financial counsellor Veronica Johnson welcomes the decision to put an end to Urban Rampage's use of Centrepay. She has witnessed the retailer take advantage of customers living in remote areas with limited retail options. "They don't have anywhere else to shop and so they're bound by whatever is readily available in the very remote places … and that's the advantage of Urban Rampage and they've taken advantage of the most vulnerable," she said.
Mr. Kirkland warns that other businesses using similar models should reflect on this decision and ensure their practices comply with the law. ASIC will continue to act to stop businesses from causing financial harm to First Nations communities.