The Australian Competition and Consumer Commission has obtained orders by consent, in the Federal Court Melbourne, after Clarus Telecom Pty Ltd engaged in false and misleading conduct.
Clarus Telecom supplies telecommunications services throughout Australia, including telephone and internet services. In the past, it used the services of India-based telemarketers to contact prospective Australian customers.
In August 2008 the ACCC instituted legal proceedings alleging that Clarus Telecom had, through its telemarketers, misled consumers by making representations that the company and its services were affiliated with or provided on behalf of Telstra Corporation.
The Federal Court has today declared that by this conduct Clarus Telecom made false and misleading representations to consumers as at no time did Clarus Telecom have Telstra affiliation or approval.
As well as declaring that Clarus Telecom engaged in false and misleading conduct in contravention of sections 52, 53(c) and 53(d) of the Trade Practices Act 1974, the Court also:
- accepted an undertaking from Clarus Telecom that neither it nor its telemarketers would make representations for three years that it has an affiliation with, approval from or consent of Telstra Corporation to contact or provide its services to prospective customers
and ordered that Clarus Telecom:
- publish corrective notice on its website
- publish an article in a telecommunications industry newsletter
- implement a trade practices compliance program, and
- pay the agreed costs of the ACCC in taking the legal proceedings.
ACCC Chairman, Mr Graeme Samuel, while acknowledging Clarus Telecom's cooperation in ultimately consenting to the court orders, said: "All businesses need to ensure that when dealing with consumers they are honest and do not mislead consumers about whether they are affiliated with larger, more well known brands.
"This case is an important warning to businesses which utilise the services of overseas telemarketers to sell their products or services to consumers. Businesses are no less liable for the unlawful conduct of overseas telemarketers than if they engaged in the conduct themselves."
For media inquiries to the ACCC Chairman, Mr Graeme Samuel, please call Ms Lin Enright, ACCC Media, on (02) 6243 1108 or 0414 613 520.
For general inquiries, please call the Infocentre: 1300 302 502.