The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court against Brisbane-based telecommunications provider, Startel Communication Co Pty Ltd (Startel).
The ACCC alleges that Startel engaged in contraventions of the unsolicited consumer agreement provisions of the Australian Consumer Law (ACL), in relation to the telemarketing of mobile phone services to consumers.
Startel is alleged to have:
• failed to inform consumers of their cooling off rights;
• failed to provide consumers with a copy of their contract within five business days;
• failed to provide consumers with contracts in the form required by the ACL; and
• supplied services and accepted payments from consumers during their 10 day cooling off period.
It is also alleged that Startel misled consumers by putting terms in their contracts that were inconsistent with consumers’ rights under the 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. The first Scheduling Conference is listed for 13 August 2013 at 9.30am.