Utel Networks Pty Ltd (Utel) - s.87B undertaking

The ACCC has accepted a section 87B Undertaking from Utel Networks Pty Ltd (Utel) following an investigation relating to breaches of the Australian Consumer Law (ACL), contained in Schedule 2 of the Competition and Consumer Act 2010 (the Act). Utel has also paid three Infringement Notices issued by the ACCC in the amount of $19,800.

Utel supplies telecommunication services, including landline, internet and mobile services. Utel uses telemarketers to promote its products. These telemarketers made representations that:

• the quality of a consumer's telecommunications service would not change upon being transferred to Utel from a rival provider; and
• Utel had an affiliation with Telstra Corporation Limited; when this was not the case.

In addition, Utel did not send consumers an agreement document, which, amongst other things, included on the front page, a notice that conspicuously informs the consumer of their right to terminate the agreement.
By engaging in the conduct described above, Utel admits that it has contravened sections 29(1)(b), 29(1)(h) and 79(b) of the ACL.

In response to allegations that Utel has breached the ACL, it has offered the ACCC a court enforceable undertaking that it will not make misrepresentations that:

• a customer is being contacted on behalf of his or her existing telecommunications provider unless Utel is the customer's existing telecommunications provider;
• Utel is affiliated with any other telecommunications providers;
• the quality of the customer's existing telecommunications service will not change by transferring to Utel (including any existing contractual or billing arrangements).

Utel will also:

• ensure that all telemarketing sales representatives inform consumers that Utel is not affiliated with any other telecommunications provider (unless Utel is affiliated with another telecommunications provider); and
• implement a trade practices compliance program.