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Australian Court Fines Bankrupt Phone Retailer
Published on:
An Australian court has refused to declare that a bankrupt mobile phone retailer had "engaged in systemic and specific unconscionable conduct," despite earlier slapping them with an AU$2.5 million fine.
The company, EDirect had been found to have deliberately sold mobile phone services to customers without checking if they had coverage where they lived.
The Australian Competition and Consumer Commission (ACCC) had alleged that EDirect made misleading representations to customers and engaged in unconscionable conduct in its sales method and in its dealings with specific customers by using a high pressure, relentless sales process.
EDirect went into liquidation after the ACCC commenced this litigation. Its 50,000 customer base was purchased by another company, M2 Telecommunications, which then worked with the ACCC to cancel the roughly 350 contracts that should not have been signed.
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