The Australian Competition and Consumer Commission has instituted legal proceedings against an educational consultancy group and its sole director for alleged misleading and unconscionable conduct.
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As revealed by Fairfax Media earlier this month, the ACCC successfully brought a freezing order against Get Qualified Australia Pty Ltd pending legal action, after a large number of consumer complaints with the potential to result in refunds in excess of $1 million.Â
On Monday the regulator confirmed it had begun proceedings in the Federal Court, alleging that Get Qualified Australia had made false or misleading representations and engaged in misleading and unconscionable conduct through its supply of services to consumers.
Proceedings were also brought against the company's sole director, Adam Wadi, amid allegations he was knowingly concerned in Get Qualified's contraventions.Â
Get Qualified Australia describes itself as "Australia's leading Skills Recognition & Recognition of Prior Learning (RPL) Specialist," and matches jobseekers with registered training organisations that issue qualifications for a range of industries, such as beauty, construction and business.
"The ACCC alleges that since 1 January 2015, more than half of consumers that have been signed up and charged fees ranging from $700 to $8500 have not obtained the qualification they were seeking," said ACCC Chairman Rod Sims.
"The ACCC alleges that Get Qualified targeted vulnerable consumers with conduct that was clearly unfair and unreasonable, including providing them with false or misleading information about eligibility and refusing refunds."Â
One such consumer was 39-year-old painter David Barclay, who was seeking a Certificate III in Painting and Decorating when he contacted Get Qualified Australia.
Mr Barclay, from Queensland, was quoted a fee of $2500 for the certificate, for which he was assured his experience made him eligible.
However, after paying $1300 Mr Barclay found out he was not in fact eligible for the certificate has been battling to claim a refund.
"They never should have issued it to me," said Mr Barclay, who remains unable to work without requisite qualifications eight months on from his experience with Get Qualified Australia.
"They have no idea of the kind of damage they are doing to low-income earners."
Among the allegations made by the ACCC is that sales representatives were call centre staff "who were not qualified to assess consumers' eligibility for qualifications and were required to meet sales targets as part of their role".
In addition to this, the regulator alleges Get Qualified Australia failed to honour its "100 per cent money back guarantee" for consumers who did not obtain a qualification, used unfair sales tactics to pressure consumers, insisted on up-front payments and failed to provide promised services after payments were made.
Mr Wadi said the company had fully cooperated with the ACCC to date and strongly disputed the case.
"We will defend the allegations, as we are of the view that they are without merit and not justified," he said.
"However, the regulator seems intent on progressing this case on what, in most instances, is flimsy and unsubstantiated evidence. We remain committed in our drive to exonerate the company."
The ACCC is seeking consumer redress orders, pecuniary penalties, declarations, injunctions, orders for the implementation of a trade practices compliance program and costs.Â
A freezing order was first sought against the company in August, in light of numerous transfers of significant sums of money to recipients in Jordan and the UAE, by Get Qualified Australia and Mr Wadi since last year.
The order remains in place until the determination of the substantive hearing and does not affect the company's ability to continue to make payments in the ordinary course of business.
CEO of the Consumer Action Law Centre Gerard Brody said, too many businesses in the sector were "putting sales before education."Â
"Australia needs a new prohibition against unfair trading to thwart business models that take advantage of people in vulnerable situations, including desperate job-seekers trying to get ahead," he said.
Do you know more? email lucy.cormack@fairfaxmedia.com.au