The
The company also admitted to manipulating credit assessments to circumvent its own credit guidelines, as well as signing customers up to multiple plans on a single day and misrepresenting products as being 'free.'
The penalty is the second highest ever imposed under the Australian Consumer Law, and has been welcomed by the
“We expect much better behaviour from businesses like Telstra,” said ACCC chair
The investigation |
The ACCC launched Federal Court proceedings against
The company co-operated with the watchdog's 18-month long investigation and has since taken steps to waive the debts incurred by the customers that were preyed upon.
The result of
Unethical practices |
To make matters worse,
Poor customer service |
In addition to the
And while
Part of the problem, is that it is particularly difficult to speak to a human at
Often, the app won't save the conversation, so you're forced to repeat yourself over and over to every different team member who responds to the inquiry.
Ultimately, people with significant debts end up with their debts being sold off to debt-collection agencies who then aggressively chase repayment, and threaten legal action, causing these people a great deal of duress.
And if the debacle that was the Federal Government's Robodebt Scheme has taught us anything, it is that people who get caught in an automated system often feel powerless, and helpless about getting out of it, leading to them suffering severe depression anxiety and in some cases considering suicide.
What is unconscionable conduct in |
Section 21 of the Competition and Consumer Act 2010 (Cth) makes it unlawful for a person to engage in conduct that is unconscionable in the provision of, or acquisition or possible acquisition of, goods or services in the course of trade or commerce.
The section makes clear that a pecuniary (monetary) penalty may be imposed for a contravention.
Section 22 of the Act lists a range of factors which a court may consider when determining whether conduct is unconscionable. These include:
- The relative strengths of the bargaining positions of the customer and supplier,
- Whether the customer was required to comply with unreasonable conditions that were in the supplier's interests,
- Whether the customer was able to understand any documents relating to the supply,
- Whether any undue influence or pressure was exerted on the customer,
- Whether any unfair tactics were used by the supplier,
- The amount for which the customer could have acquired similar goods or services elsewhere,
- Any industry codes or requirements,
- The risks to the customer arising from the supplier's conduct,
- The extent to which the supplier was willing to renegotiate the terms and conditions of the agreement, and
- The extent to which the parties acted in good faith.
The specific circumstances which may amount to unconscionable conduct are not listed in the Act; however, the courts have made clear the conduct must be more than simply unfair or a result of persistent or harsh bargaining.
Rather, the behaviour must be so harsh or oppressive that offends against the good conscience of right-minded members of society. Such behaviour will normally be deliberate, manifestly unfair and patently unreasonable.
Complaints of unconscionable conduct can be made to the ACCC, the
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