The State Administrative Tribunal has ordered a retail landlord to repay a Mandurah pharmacy more than $42,000 after it found it was unlawfully charging management fees for four years.
The trustees of the pharmacy which was trading as Friendlies Chemist but now trades as Priceline Pharmacy questioned their landlords fees and processes.
Trustees Walter Phillipe and Alan Hipper claimed Kimbriki Nominees Pty Ltd, charged them incorrect fees between April 2011 and April 2015.
An order was made by the State Administrative Tribunal on Friday for the management fees of $42,248.74 to be reimbursed to the tenant within seven days.
The ruling has prompted the Peel Chamber of Commerce and Industry to urge small business owners entering into any contractual arrangement to seek professional advice.
Acting Manager Andrew McKerrell said there is a Landlord Advisory service and a Tenancy advisor service in WA, and REIWA has a comprehensive range of support services.
"In relation to the Pharmacy in Sholl Street, we were not aware of any change of ownership.
"The best thing tenants can do if they are wary of their contractual obligations is search for clarity and confirmation through the Department of Commerce Consumer Protection website," he said.
"It would appear that some businesses struggle to fully comprehend regulations and legislation in relation to contractual obligations.
"It’s timely as the Peel Chamber is currently considering conducting some information sessions and workshops in relation to these matters.”