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Unique under ACCC’ s hammer
Regulator seeks to recover fees, levy penalties against de-licensed VET provider.
By Andrew Bracey
The Australian Competition and Consumer Commission has initiated legal proceedings against VET provider Unique International College over allegations the company made“ false or misleading representations and engaged in misleading or deceptive and unconscionable conduct”.
In a statement issued in late October, the ACCC alleged:“ Unique offered prospective students a free laptop, and in doing so, represented that the course( s) were free or were free if the consumer did not earn more than about $ 50,000 a year, when in fact consumers incurred a VET FEE-HELP debt payable to the Commonwealth Government if they earned more than $ 54,126 in the 2014 – 2015 income year.
“ It is also alleged that Unique’ s conduct, including its marketing and enrolment system and its dealings with some consumers was, in all the circumstances, unconscionable, in contravention of the [ Australian Consumer Law ].”
The announcement came after ASQA’ s cancelling of Unique’ s registration as a provider of VET and educational services – including to overseas students – just a week earlier.
Unique chief executive Amarjit Singh had not responded to Campus Review’ s request for comment in relation to the ACCC allegations and ASQA actions at the time of press.
On Unique’ s website, a statement from Singh asserts that the provider is dedicated“ to achieving academic excellence and ensuring that our students receive the best services possible to meet their individual needs”.
“ Whether it be to check your academic progress and attendance, help you look for work, or help you adjust to living in Australia, you can count on a Unique International College staff member to listen and provide you with a dedicated and personal service,” Singh’ s statement reads.
The legal proceedings stemmed from a joint investigation by the ACCC and NSW Fair Trading. It found that during the 2014 – 15 financial year, Unique enrolled more than 3600 students in its diploma courses and was paid about $ 57 million by the Commonwealth related to those enrolments.
ACCC chair Rod Sims said that just
“ 2.4 per cent of the consumers who signed up to and commenced Unique’ s courses between [ July 1, 2014 and December 30, 2014 ] completed their course”.
“ We are particularly concerned that unscrupulous door-to-door marketing practices previously used in the energy sector are now appearing in the education sector. The joint investigation illustrates how seriously both agencies view these allegations,” Sims said.
The ACCC statement advised that it would seek declarations, injunctions and redress for affected consumers by cancelling VET FEE-HELP debts, as well as issuing“ pecuniary penalties, corrective notices and orders requiring the implementation of a consumer law compliance program”.
“ The ACCC and the Commonwealth are seeking orders for the repayment of course fees paid by the Commonwealth to Unique in respect of any VET FEE-HELP loans which are cancelled by court order, as well as costs,” the organisation stated.
The legal action has been welcomed by ASQA chief commissioner Chris Robinson, who said his organisation had been working closely with the ACCC and other regulators in an effort to stamp out unethical and inappropriate behaviour by VET providers. Robinson said the findings of recent targeted audits by ASQA of VET FEE-HELP providers had indicated varying levels of compliance with the required national standards that all RTOs must meet.
“ ASQA decided to cancel Unique’ s registration and impose conditions on a number of other VET FEE-HELP-approved training providers,” he said.
Greens Senator Lee Rhiannon, who has long advocated for tougher action to clean up the private VET sector, said the allegations underlined the need to ban for-profit VET providers from being allowed to receive federal education subsidies or funding.
“ A Senate inquiry the Greens initiated revealed that problems similar to the scandal involving Unique International are widespread and systemic,” Rhiannon said.“[ ASQA ], found 45 per cent of registered training organisations investigated had most likely breached national standards. Abolishing contestability funding is the only way to stop private companies exploiting the community with cheap-to-run courses.”
A directions hearing at the Federal Court in Sydney regarding the allegations has been scheduled for November 24. ■
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