Credit: Supplied
Telecommunications reseller Superfone has been ordered by the Federal Court to pay $300,000 in penalties for breaching consumer telemarketing protection laws.
The decision is focused on the actions taken by telemarkets acting on behalf of Superfone cold-calling consumers between June 2017 and December 2018, when the telco reseller offered discounted plans on their existing network if they signed up to a new contract through Superfone.
The Australian Competition and Consumer Commission (ACCC) initiated proceedings against the telco reseller about its cold-calling tactics in December 2019, with the Federal Court declaring in June 2020 that Superfone contravened Australian Consumer Law.
According to the ACCC, over 1,400 consumers, including “many” elderly people, were contacted by Superfone.
The court then found that Superfone's customer base suggestive of vulnerable consumer targets and that it was successful in locking in unsolicited agreements with these customers.
ACCC deputy chair Delia Rickard labelled the telco reseller’s behaviour, which included unsolicited calls and misleading consumers into entering unwanted contracts, as “unacceptable”.
Alongside this, Superfone failed to provide information about the ten-day cooling off period and consumers' rights on contract termination, the ACCC found.
Additionally, consumers that tried to cancel their contracts were faced with termination fees.
“All businesses must comply with the Australian Consumer Law provisions dealing with unsolicited calls and door to door sales, including the ten-day cooling-off period and termination rights," Rickard said.
“These laws exist to protect consumers when dealing with cold callers and give them the opportunity to change their minds about a purchase or agreement they have made as a result.
“We will continue to take enforcement action against businesses which contravene the unsolicited consumer agreements provisions.”
In addition to the penalties, Superfone was ordered to email consumers that entered into unsolicited agreements and paid termination fees to contact the telco reseller for a full refund.
It was also ordered to allow affected customers with expired agreements that continue to receive services on a month-to-month rolling basis to exit their contract at no charge.
Superfone has admitted liability but has contested the penalty amount and additional orders.
