Mark Foster-Murray (left) and Colin Salisbury started We Are Bamboo to help travellers holiday ethically.
Mark Foster-Murray (left) and Colin Salisbury started We Are Bamboo to help travellers holiday ethically.
A consumer watchdog says it’s “concerned” about complaints against a Kiwi-based travel company that recently announced it was folding and wouldn’t be returning what is believed to be millions of dollars owed to customers.
In a letter to liquidators, Commerce Commission senior investigator of the Fair Trading Branch Roy Matthansaid the commission reserved its right to investigate the company, Wearebamboo, and “remains concerned” about allegations made by furious customers.
If the claims are proven, the company and its director, Colin Salisbury, could face multiple breaches of the Fair Trading Act 1986, Matthan said.
Hundreds of customers have been left thousands of dollars out of pocket after the company announced its closure in October.
Wearebamboo was an ethical travel company offering tours that included volunteer work for travellers who wanted to give back to the communities they were visiting. Most of its customers were from the US, UK, Canada, and Australia and tours were held outside of New Zealand.
“We signed up for these because we wanted to make a difference in the world and they took that away from us,” affected customer Sheryl Yesucevitz told the Herald.
A Facebook group set up for people who had lost money in the company’s closure has about 1400 members, many of whom had travelled with Wearebamboo before.
At the end of October, the company posted a statement to their website and emailed some customers announcing their closure, citing Covid pressures but also laying part of the blame at the feet of a group of customers.
“There is a small group of individuals who were not prepared to wait [for delayed trips], and their actions and online influence have broken us, which impacts us all,” the statement said.
“Our intentions here are not to play the victim but simply share with you the levels to which this group has gone to ensure our downfall, and made it their sole purpose to attack us, our families, our staff, and our customers with the intent to destroy Bamboo.
“Through tears, the Bamboo dream is over but will live forever, in our broken hearts.”
When asked by some customers whether they would be refunded the thousands of dollars already paid for holidays, the company told them over email they would not be receiving refunds, invoking the “force majeure” section of its terms and conditions.
Liquidator BDO Wellington’s first report estimates the company owes at least $2.5 million to individuals.
The report said the company had just $116,264 in the bank available for creditors, and $28,275 as related party loans.
As part of the liquidation, the Commerce Commission asked BDO to provide a summary of the complaints received about the company.
“As you are aware, the Commerce Commission has recently opened an investigation into the conduct of WEAREBAMBOO Limited . . . however, as WAB is now currently going through the liquidation process, the commission considers it is appropriate to suspend its investigation into the matter,” Matthan wrote in the letter, released to the Herald under the Official Information Act.
From June to mid-December, the commission received 240 complaints about the company, he said.
Sheryl Yesucevitz, of Massachusetts, said she booked the trips as a way to "give back" while travelling.
“Some complainants expressed concerns that ... the activities of the ‘directors’ on social media reflected a lifestyle that appeared incongruous with the company’s alleged financial situation.”
Complaints also included issues around travel insurance purchased through We Are Bamboo, which appeared to not exist, and the fact Bamboo was promoting tours and seeking payments up to and including October.
“Complainants allege that WAB would have known they would not be able to supply the tours.”
They allege Wearebamboo accepted payments for travel packages with no intention to supply them, incorrectly applied the force majeure clause to avoid giving refunds, and accepted payments for insurance cover without actually arranging the cover.
“The allegations have not been investigated or proven, and only the courts can decide if there has been a breach of the Act,” Matthan said.
But if the allegations were substantiated the commission believed it could constitute a breach of multiple sections of the Fair Trading Act, including sections prohibiting “unconscionable conduct”, “misleading and deceptive conduct”, and demanding or accepting payment for services without intent to supply them, or without having reasonable grounds to believe they would be able to supply them.
A police spokeswoman also confirmed police had received more than 40 complaints about the company and have asked complainants to report to their local police to make formal statements.
