News

Internet kiosk company leaves investors unhappy

February 23, 2004

AUCKLAND, New Zealand -- Shopping mall Internet kiosk company Zip Internet has been placed in liquidation leaving a string of angry investors and estimated debts of $2 million.

Its activities have also been drawn to the attention of the police, according to an article in the New Zealand Herald.

Detective Sergeant Ian Tuke of the fraud squad said in the article that his unit has had several complaints relating to Zip Internet and Zip Technologies.

Zip Technologies may also face legal action by shopping mall giant Westfield, according to the article. The company acted as the agent for the kiosks installed at Westfield malls. The kiosks have since been removed.

Andrew Davidson, deputy director of Westfield, said in the article that Zip Technologies failed to pay license fees due to Westfield last year and, as a result, Westfield terminated the license agreement with Zip.

In 2002, a Zip Internet director offered investors the rights to advertising revenue from panels on Web access kiosks it was installing in shopping malls around Auckland. Those rights generally cost $39,800 and investors understood they were the sole owners, the article stated.

Doug Death, an investor, said many of the kiosk owners had since found others had been sold the same kiosk. Death said he was down at least $50,000 out of pocket.