The ACCC has started proceedings against telemarketing company VIPtel Mobile, also known as EDirect, alleging the use of high-pressure sales tactics.
ACCC has accused the company, which markets mobile phone plans, of using strongarm tactics to coerce customers, including the mentally disabled, into contracts they did not understand.
Charges include misleading representations, making contractual terms difficult to understand, and not providing customers with the opportunity to read terms and conditions before entering the agreement.
VIPtel required only a yes answer to obtain a customer's consent to the contract, and often squeezed consent out of people who clearly did not want and could not afford the mobile phone plan being offered, the ACCC said.
VIPtel has agreed to provide undertakings to the court agreeing to reverse these practices in lieu of interlocutory orders, the regulator added.
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