Consumers to be better protected in the use of premium call information services

The Australian Competition and Consumer Commission has obtained orders in the Federal Court, Melbourne to disburse the remaining monies frozen as part of an action last year against Cedric Collinson, trading as CDRC's Financial Network.

The ACCC alleged Mr Collinson had falsely represented to callers that his business was able to provide them with loans when it was unable to do so.

The Court had previously ordered that consumers who lodged a claim with the ACCC should be paid a refund from the frozen monies. These claims have now been assessed and consumers can expect a full refund of the cost of their calls to CDRC by Christmas.

The orders granted recently allow the remainder of the frozen funds to be provided to the Telephone Information Services Standard Council to pay further consumer claims received in the next 12 months. After this time, TISSC will establish a 190 premium call ($5 per minute charge) consumer education campaign from any remaining funds.

The aim of the education campaign is to warn consumers of the possibility that some providers of premium call information services may engage in misleading or deceptive conduct and unconscionable conduct. Another objective of the campaign is to inform consumers who utilise such services of the remedies available through TISSC should they believe they have been misled or subjected to unconscionable practices.

"A satisfactory result has been achieved for consumers", Acting ACCC Chairman, Mr Rod Shogren, said today. "Not only will consumers be refunded money that is rightly theirs, but through the TISSC education campaign they will be afforded better protection in the future against unscrupulous premium call information providers and will be better informed of the appropriate avenues for redress".