VIPtel Telemarketers Were Misleading: ACCC

Written by Adam Gosling

Monday, 30 July 2007

The Australian Competition and Consumer Commission (ACCC) says mobile phone packages were sold to conusmers in the Northern Territory even though there was no network coverage there. The ACCC has instituted proceedings in the Federal Court, Darwin, against EDirect (trading as VIPtel Mobile) in relation to telemarketing calls for mobile phone packages after the NT Office of Consumer and Business Affairs started getting complaints. It alleges that EDirect telemarketed mobile phone packages into areas where there was no relevant network coverage whilst failing to advise prospective customers of the lack of coverage. The company also provided consumers with misleading information regarding the costs and services included in the service plans in contravention of sections 52 of the Trade Practices Act 1974. It is also alleged EDirect accepted payment from customers in circumstances where they were not able to supply the service packages in contravention of section 58. The ACCC also alleges EDirect represented on the VIPtel Website (www.viptel.com.au) that it provided Australia wide network coverage when this was not the case. The ACCC has also joined EDirect's directors, Mr Vishal Gupta and Mr Manan Chopra, to the proceedings in relation to the coverage representations and acceptance of payment. The ACCC wants the court to declare that EDirect's actions contravened the Act and that its directors, Vishal Gupta and Manan Chopra aided, abetted, counselled or procured and/or were knowingly concerned in the conduct of EDirect in relation to the coverage representations and acceptance of payment. Also, the ACCC wants the Federal Court to issue injunctions restraining them from engaging in such actions and to force the company to undertake a community service order for an educational broadcast on nominated indigenous radio stations. Since at least January 2006 EDirect has telemarketed mobile phone packages offering service plans utilising the Optus GSM network. EDirect purchases access to the Optus GSM Network from a third party and is not in any way related to Optus. The ACCC has not alleged Optus was in any way involved in the conduct of EDirect. Related news items ACMA Issues Biggest Ever Fine To Phone Spammer -23/07/2007 LG Goes After Quanta Again -05/07/2007 Do Not Call Register Swamped -03/05/2007 TELSTRA TARGETS ORION IN COURT -26/10/2005 COOLING OFF PERIOD FOR TELEMARKETERS -20/10/2005 Newer news items Consumer Advice For Premium Mobile Services -03/09/2007 iPhone Thumbs Story Running Even Though A Hoax -14/08/2007 Telstra, Vodafone Bicker Over NZ Subscribers -14/08/2007 Telstra Tackles Canberra In Court -03/08/2007 Greenies Slam Recycling Efforts -30/07/2007 Older news items Feuding Mobile Email Players Settle Their Differences -10/07/2007 Judge Judges Optus Better Value Than Telstra -17/05/2007 More Work For Nokia Lawyers -04/05/2007 Kiwi Govt Accused Of Dodgy Termination Deal -03/05/2007 Kiwi Risks Huge Legal Bill To Recover Laptop -19/04/2007 Tag This Now: