Mr Shorten said on Tuesday he was willing to work with Prime Minister Malcolm Turnbull on solving the sector's problems and warned that "large companies who treat vulnerable older Australians in the manner in which we saw last night are not part of the solution". Allan Fels said "vigorous" enforcement action from all relevant agencies was required to clean up the sector. Credit:Alex Ellinghausen "A nation that treats its old people in the manner in which we saw on television last night should be ashamed of itself," Mr Shorten said. "We need to do a lot more to treat older people well. If we don't face up to the challenges in aged care now, it will be a much harder, bigger problem in the future when we eventually face up to it." 'Greatest untouched consumer protection issue'

Professor Fels described the retirement village rort as the greatest untouched consumer protection issue of this century and called for urgent enforcement action from governments and regulators. Professor Fels said the media investigation into the multibillion-dollar sector, specifically Aveo, had uncorked the tip of a volcano. Gwyneth Jones, one of the residents who says she has was pressured. Credit:Penny Stephens "Vigorous" action from all relevant law enforcement agencies was required to clean up a sector that had fallen through the regulatory cracks, he said, calling on the commonwealth government to launch an inquiry.



"These days we talk of vulnerable and disadvantaged consumers but the aged are possibly the most important category," Prof Fels said.



The media investigation spoke to current and former residents, their children, lawyers, former Aveo staff and lobby groups and found alarming business practices at Aveo — including gouging, a business model that profits from churning residents, safety issues and misleading marketing and advertising. 'Company under seige'

Separately, on Tuesday Aveo launched a buyback of 9 per cent, or just under $150 million, of the company's stock on a 1-for-1 basis. Buybacks are commonly used by companies to reward shareholders.



The decision to launch a buyback as it battles a scandal was described by one stockbroker as the reaction of a company under seige. Another said it was further evidence that the company put shareholders first. Tim Allerton's aunt was a victim of Aveo's retirement village rip-off. Credit:Janie Barrett The joint investigation revealed that problems emerged in the retirement village sector as far back as 2007, when a federal parliamentary committee made several recommendations to improve protection for residents.



That committee recommended the ACCC investigate whether exit fees should be banned. It recommended the appointment of an ombudsman and said if state legislation wasn't working, consideration should be given to putting it under federal corporation's law. The report's recommendations were never taken up. Opposition Leader Bill Shorten blasted the exploitation of vulnerable people in aged care and flagged a willingness for bipartisan reform following the revelations. Credit:Alex Ellinghausen

Minister 'concerned' These days we talk of vulnerable and disadvantaged consumers but the aged are possibly the most important category. Allan Fels Minister for Aged Care Ken Wyatt told ABC News on Tuesday morning he was "concerned" about the revelations in the investigation.



"I will take the necessary steps that are appropriate. We certainly have to prevent exploitation of senior Australians," Mr Wyatt said. Mr Wyatt said he would look at the recommendations handed down in the 2007 parliamentary report. Aveo chairman Lee Seng Huang declined to be interviewed. Credit:Jessica Hromas

"I'd certainly look at having a look at the regulatory body and then certainly talking about the level of fees and the abolition would have to be a factor I'd have to consider but I won't commit to that until I have read the report," Mr Wyatt said.



"I now want to revisit that report, look at what the detail was and then look at what options I can take forward, and certainly have discussions with colleagues — because I'm very keen and have always been committed to looking after an ageing population." 'Extremely distressing' Greens spokeswoman on ageing Rachel Siewert said it was extremely distressing older Australian were being targeted through retirement villages. A joint media investigation has found alarming business practices at retirement village operator Aveo. "This has been going on for some time and it is disturbing that recommendations of a parliamentary committee report that advised on how to prevent this exploitation 10 years ago were not acted on," Senator Siewert said.

"It is clear there must be national action, including regulation. The current status quo is not working and people should not be taken advantage of in their later years." Senator Siewert said the government must immediately look to address exit fees and complicated contracts. "The government needs to investigate whether Aveo and other providers operate with the same sales-based commission-led culture that has created so many scandals in the banking sector," she said. "This is why the Australian Greens have long been calling for housing to be regulated as a financial product so that ASIC has the powers to crack down on anything that looks like a scam."