Gotalk Ltd - s.87B undertaking

Gotalk Ltd, owner of Gotalk Communications Pty Ltd, an Australian telecommunications carrier, admits that telemarketers operating on its behalf were likely to have engaged in conduct between 2004 and November 2007 which, in the view of the ACCC, misled and harassed consumers.

Gotalk has undertaken to compensate any consumers who transferred their services to it as a result of the conduct and suffered loss as a result of that transfer.

It will write to all of its current customers who were obtained through telemarketing, and advertise in a number of newspapers to reach former customers.  It will also display a copy of the advertisement on its website, www.gotalk.com.au.

As part of Gotalk’s normal terms and conditions, customers obtained through telemarketing are able to terminate their contracts without penalty.

Examples of the misrepresentations that were made to consumers include:

• they were being contacted on behalf of their current telecommunications carrier;
• Gotalk Communications was an owner, subsidiary, agent or reseller of their current carrier;
• they were required to change their carrier to Gotalk Communications;
• incorrect statements as to the price and/or effect of the terms and conditions of Gotalk Communications' services; and
• changing to Gotalk Communications would not compromise any benefit for bundling multiple services with one carrier.

The telemarketers also contacted some consumers with great frequency, despite the consumers making it known that they did not wish to acquire the services nor receive further calls from Gotalk Communications, and continued to contact some consumers until they agreed to change their carrier to Gotalk Communications.

Gotalk admits that, if proven, these incidents would constitute contraventions of the Trade Practices Act 1974 for which it would be liable.

Gotalk has terminated its contracts with the telemarketing companies involved in the conduct, and has undertaken to monitor carefully the behaviour of any telemarketers it uses in future.

It will implement a compliance program which will include training in TPA matters for all staff involved in customer contact, protection for whistleblowers, and a complaints handling program that meets the Australian Standard.

It will keep complete recordings of all calls that result in a transfer to Gotalk, and record an equal number of conversations per month which do not result in a transfer.  Gotalk staff will audit a significant number of randomly selected calls and report their findings to Gotalk’s General Counsel.

All relevant documents will be made available to the ACCC on request.