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People Telecom’s Posing Poses Problems
Posted: 05/03/2010
Following an investigation by the Australian Competition and Consumer Commission (“ACCC”), People Telecom Pty Limited (“People Telecom”) has offered court enforceable undertakings to the ACCC in respect of potential breaches of the Trade Practices Act 1974 (Cth) (“Act”).
People Telecom is a telecommunications services provider and its representatives engage in door-to-door sales and telemarketing to promote People Telecom’s mobile, fixed phone and data services.
The ACCC alleged that representatives of People Telecom procured consumers to change their telecommunications services from their then current provider to People Telecom by making misleading or deceptive representations, in breach of the Act.
Complaints received by the ACCC indicated that representatives of People Telecom made misleading or deceptive representations to consumers that:
* They were representatives of the consumer’s then current telecommunications services provider.
* People Telecom was an agent, subsidiary or re-seller, of the consumer’s then current telecommunications services provider.
* The consumer was obligated to switch to People Telecom.
* Switching to People Telecom would not affect the consumer’s existing contractual or billing arrangements with the consumer’s then current telecommunications services provider.
Further, in certain circumstances, complaints suggested that representatives of People Telecom had transferred telecommunications services to People Telecom without consent.
In response to the ACCC’s concerns, People Telecom has provided the ACCC with an undertaking that it will:
* Monitor its representatives and ensure its representatives comply with scripts provided by People Telecom.
* Not make the misrepresentations described above.
* Inform affected consumers and offer them the ability to terminate their contract and refund claimed debts.
* Implement a trade practices compliance program.
The ACCC's action is a further example of its stated determination to carefully monitor the actions of businesses in the telecommunications industry. |
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