Court dismisses Application for declarations

25 September 2012

The Federal Court has dismissed an application from the Australian Competition and Consumer Commission for declarations that EDirect Pty Ltd engaged in systemic and specific unconscionable conduct, and misleading and deceptive conduct in its telemarketing of mobile phone services. EDirect went into liquidation after the ACCC commenced this litigation.

The 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.

There have been two previous adverse findings against EDirect from the Court. Most recently EDirect was ordered to pay a $2.5m pecuniary penalty on 6 September 2012 for sale of mobile phone packages into remote communities where there is no mobile coverage on the Optus network.

The ACCC is considering the judgement and whether to seek leave to appeal.

The ACCC Business Snapshot on Unconscionable Conduct contains information about what unconscionable conduct means and tips on how to avoid engaging in the conduct or becoming a victim of it.


Release number: 
NR 206/12
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