The ACCC has instituted Federal Court proceedings against Productivity Partners Pty Ltd, trading as Captain Cook College, alleging systemic unconscionable conduct in breach of the Australian Consumer Law.
The ACCC alleges that from 7 September 2015, Captain Cook College removed consumer safeguards from its enrolment and withdrawal processes for online courses to improve its financial performance.
“We allege that Captain Cook College engaged in systemic unconscionable conduct designed to maximise profit at the expense of their students,” ACCC Commissioner Sarah Court said.
“We are very concerned by Captain Cook College’s decision to make process changes that we will submit removed consumer safeguards. We allege that this significantly reduced the College’s ability to detect misconduct by its sales agents and assess a consumer’s suitability or participation in the course they had been enrolled in.”
“We further allege that the removal of consumer safeguards increased the number of students that Captain Cook College enrolled and who remained enrolled, allowing the College to increase VET FEE-HELP payments from the Commonwealth,” Ms Court said.
Approximately 5,500 affected consumers whose enrolment was processed during the period from 7 September 2015 have VET FEE-HELP debt, totalling over $60 million. Around 98% of those 5,500 consumers failed to complete any part of the course they were enrolled in, and around 86% never even logged in to their online course.
In these proceedings, it is also alleged that Captain Cook College made false or misleading representations, engaged in unconscionable conduct and failed to provide unsolicited consumer agreement protections in its dealings with four individual consumers.
The ACCC has also alleged that Ian Cook (former Captain Cook College CEO), Site Group International Limited (Site, the parent company of Captain Cook College) and Blake Wills (former COO of Site) were knowingly concerned in Captain Cook College’s systemic unconscionable conduct.
“We will not hesitate to take appropriate action against businesses and executives who treat consumers unconscionably in breach of the Australian Consumer Law,” Ms Court said.
The ACCC is seeking pecuniary penalties, declarations, corrective notices, adverse publicity orders, finding of fact orders and orders requiring the implementation of a consumer law compliance program, as well as costs. The ACCC is also seeking orders disqualifying Ian Cook and Blake Wills from managing corporations.
Consumers with concerns about their VET provider can contact the VET Student Loans Ombudsman atwww.ombudsman.gov.au/vslo(link is external) and complete the online complaint form.
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