Australian Telco Faces Legal Action Over Telemarketing Abuses
Published on: 22nd Jul 2013
By: Simon Davies
Australia's Competition and Consumer Commission has instituted proceedings in the Federal Court against the MVNO Startel for breaches of telemarketing regulations.
Amongst the allegations, Startel is said to have failed to inform consumers of their cooling off rights and failed to provide consumers with a copy of their contract within five business days.
It is also alleged that Startel misled consumers by putting terms in their contracts that were inconsistent with consumers' rights under Australian Consumer Law (ACL).
"The ACCC takes very seriously the obligations placed on businesses by the unsolicited consumer agreement provisions of the Australian Consumer Law," ACCC Acting Chair Delia Rickard said.
"Consumer protection in the telecommunications sector is an enforcement priority for the ACCC. Companies using telemarketing must ensure that their practices and compliance programs reflect consumer laws as the ACCC will take action when necessary."
The ACCC is seeking declarations, injunctions, a community service order, an order for Startel to write to affected consumers, an order for Startel to establish and maintain a compliance program, pecuniary penalties and costs.
This matter has been filed in the Federal Court in Brisbane.
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