ACCC takes action against Superfone

The ACCC has instituted proceedings against telecommunications provider Superfone for alleged false or misleading representations and alleged breaches of laws arising from unsolicited telemarketing sales.

The ACCC claims that, between June 2017 and December 2018, telemarketers acting on behalf of Superfone cold-called consumers offering them discounted plans on their existing network if they signed up to a new contract via Superfone.

“In these proceedings we allege Superfone breached the Australian Consumer Law by making consumers think its offers and services were endorsed by or affiliated with their existing telco provider when this was not the case,” ACCC deputy chair Delia Rickard said.

Superfone logo

The ACCC also alleges Superfone breached the Australian Consumer Law’s unsolicited consumer agreement provisions that are in place to protect consumers from high-pressure telemarketing calls, and from signing up to contracts they may not understand.

Under the Australian Consumer Law, consumers who enter into unsolicited consumer agreements have cooling-off rights. This means they can change their minds and cancel the contract for any reason without penalty within 10 business days. Salespeople cannot take payment or commence supplying any services during the cooling-off period.

“We allege that Superfone’s telemarketers repeatedly told consumers they could not terminate the contract without penalty and failed to inform consumers about their cooling-off rights, when these rights are enshrined in the Australian Consumer Law,” Rickard said.

The ACCC is seeking a consumer redress order, penalties, declarations, an order for corrective notices and costs.

Superfone is a reseller to consumers of mobile, landline and internet services which use major telecommunication companies’ networks.

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