ACCC Fines Telco Over Misleading Representations
Friday 29 January 2016 @ 9.16 a.m. | Legal Research | Trade & Commerce
The competition regulator has fined telecommunication services provider Voiteck Pty Ltd (Voiteck), $10,200 claiming it tried to deceive residents of a South Australian retirement village into thinking they had to sign up for its services.
The Australian Competition and Consumer Commission (ACCC) issued the infringement notice because it had reasonable grounds to believe that Voiteck had made false or misleading representations to residents of Lifestyle SA retirement villages about their right to choose a telecommunications services provider.
Background
In June 2015, following Lifestyle SA selecting Voiteck as its “preferred” telecommunications provider, Voiteck sent a letter to residents of Lifestyle SA retirement villages stating that:
- Voiteck had been chosen to provide internet and telephone services to Lifestyle SA;
- in July 2015 Voiteck would become their billing provider; and
- Voiteck would be migrating all residents to new call rates and internet services.
The ACCC considered that the letter represented to Lifestyle SA residents that they did not have a choice of internet and telephone services provider, and were required to use Voiteck for these services, when this was not the case.
Targeting of Vulnerable Customers
Commenting on this matter in a recent ACCC Media Release, the Acting ACCC Chairman Michael Schaper said:
“Consumer protection issues involving vulnerable consumers, particularly older consumers, is a current enforcement priority for the ACCC. In this case, the ACCC was concerned that residents of Lifestyle SA retirement villages were given the misleading impression that they had no choice of internet and telephone services provider and were required to use Voiteck. In reality, they were free to choose any service provider.”
Payment of Penalty Not Admission of a Contravention
It should be noted that the payment of a penalty specified in an infringement notice is not an admission of a contravention of the Australian Consumer Law (ACL) contained in Schedule 2 of the Competition and Consumer Act 2010 (Cth). The ACCC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.
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Sources:
ACCC fines telco over alleged retirement home trickery
Voiteck pays $10,200 penalty for alleged false or misleading representations to retirement village residents – ACCC Release MR 3/16
