Australian Competition and Consumer Commission v Phoenix Institute of Australia Pty Ltd (Subject to Deed of Company Arrangement)

The Australian Competition and Consumer Commission (ACCC) filed proceedings against Phoenix Institute of Australia Pty Ltd and another respondent (collectively referred to as "the respondents") for alleged breaches of consumer law. The ACCC alleged that the respondents engaged in unconscionable conduct and made misleading representations in connection with the supply of online vocational education and training (VET) courses. The alleged contraventions included targeting vulnerable consumers, employing high-pressure sales tactics, offering inducements, and making misrepresentations. The respondents submitted to any order of the Court save as to costs.

The court had to decide whether the respondents’ marketing and enrolment systems were unconscionable, whether they displayed a callous indifference to consumers’ eligibility and suitability for the online courses, and whether the conduct of the Brokers and Agents was to be attributed to the respondents. The court also needed to determine if the respondents engaged in misleading or deceptive conduct in contravention of sections 18 and 29 of the Australian Consumer Law (ACL).

The court found that the respondents' marketing and enrolment systems were indeed unconscionable. The targeting of vulnerable consumers, high-pressure sales tactics, and inducements were significant factors in the court's decision. The respondents failed to implement adequate safeguards to ensure that students were fully informed about their rights and liabilities under the VET FEE-HELP loan scheme. Additionally, the court held that the conduct of the Brokers and Agents was to be attributed to the respondents, and they engaged in misleading and deceptive conduct towards specific consumers.

In conclusion, the court found the respondents liable for unconscionable conduct and misleading representations. The court ordered that the respondents were not to seek enforcement of pecuniary penalties, injunctions requiring monies to be refunded, or costs orders without further leave of the Court.