Training Providers & Marketers Stephen Bailey Project Officer | National Projects Compliance & Enforcement nationalprojectsnswft@finance.nsw.gov.au 02 9895 0515 www.fairtrading.nsw.gov.au
Australian Consumer Law (ACL) • National law for consumer transactions • Misleading and deceptive conduct • Unconscionable conduct • Unfair contract terms • Unsolicited consumer agreements 10 business day cooling off - 6 months if information not provided to consumer - • Consumer guarantees (refunds, redress)
Education & Training Complaints • Increasing complaint numbers (all numbers are for previous 12 month period) 2000 1618 1524 1500 1314 National 1000 NSW 595 555 490 428 500 353 0 31 Dec 11 30 Jun 12 31 Dec 12 30 Jun 13 31 Dec 13 30 Jun 14 • High average value – over $4,500 in NSW
Consumers being targeted Culturally and linguistically diverse Indigenous People with a Disability Elderly Young Low-income Low-literacy
Conduct of Concern • Vocational education & training (VET) sector • Unsolicited approaches, local people paid to market • Promised incentives: cash, iPads, laptops • Misleading info about VET FEE-HELP loans to fund courses: ‘free’, ‘Government funded’ • Misleading info about the course: student ability to complete; upselling to diploma; career prospects • Not providing paperwork or cancellation details
Example – Metropolitan Sydney • Consumers: elderly, Chinese community • Marketing: family friend (paid), cash/laptops • Course: Diploma in Salon Management • $25k VET FEE-HELP loans not disclosed • Provided no paperwork • Refusal to cancel enrolment and loans
Example – Regional NSW • Consumers: indigenous & low-literacy • Marketing: local person (paid), cash/laptops • Course: online Diploma Business/Management (some consumers signed to multiple diplomas and providers at the same time) • $20k VET FEE-HELP loans not explained • Provided no paperwork • Consumers did not know how to cancel
What is Fair Trading doing? Complaints & Education Enquiries Working with other agencies Compliance & and providers Enforcement
Complaints & Enquiries • Providing information and options to consumers • Assisting to resolve consumer complaints • Referring consumers to other relevant agencies
Education • Online: website information and fact sheet • Online: Facebook and Twitter • Kit: Poster, DL card (translated) and post cards • Presentations to consumers, industry and service providers • Public warnings, media releases and interviews
Compliance & Enforcement • Investigating serious conduct - Can jointly investigate with other regulators - Criminal or civil proceedings in Court – injunctions, penalties to $1.1million, damages - Court-enforceable undertakings - Requires evidence & witnesses • Proactive investigations - Marketplace surveillance - Substantiation notices seeking proof of claims - Checking contracts for unfair terms
Working with other agencies • Working with ACL regulators (compliance/education) • Accepting complaints on behalf of clients • Sharing educational material and strategies for resolving disputes • Providing guidance to help clients identify non- compliant trading providers, marketers and conduct • Liaising with, and referrals to ASQA and Commonwealth Department of Education and Training (VET FEE-HELP)
What can you do? • Read Fair Trading’s educational material • Talk with your clients & communities • Assist clients to resolve their complaints with training providers • Assist clients to lodge complaints with Fair Trading (or information to assist with compliance work) • Tell Fair Trading about people marketing training using illegal or unethical techniques
Resolving disputes (not VET FEE-HELP) • Check contracts for cooling off periods, special circumstances clauses and cancellation fees • Confirm cooling off periods for unsolicited consumer agreements under the ACL • Complain in writing to the training provider - cite any misleading or deceptive conduct - seek cancellation without penalty during cooling off period, or other outcome
Resolving disputes (not VET FEE-HELP) • Complain to NSW Fair Trading on 13 32 20 or at www.fairtrading.nsw.gov.au • Apply to NSW Civil & Administrative Tribunal (NCAT)
Resolving disputes (VET FEE-HELP) • Specific process for VET FEE-HELP loans/courses • Check paperwork or the training provider’s website to determine the ‘census date’ (cooling off period) • Before the census date: Cancel in writing (no penalty, no loan); - Detail any misleading conduct - Ask for marketer’s details (provide to Fair Trading) -
Resolving disputes (VET FEE-HELP) • After the census date, if misleading or deceptive marketing about the course or VET FEE-HELP loan: Write to the training provider, detailing misleading conduct - Seek cancellation of the course enrolment and loan - Ask for marketer’s details (provide to Fair Trading) - • After the census date, cancel unfinished subjects if there are ‘special circumstances’: Write to training provider to cancel enrolment & loan - If declined, request internal review from training provider - External review at Administrative Appeals Tribunal - If training provider ceased training > Dept of Education -
Questions & Discussion
Reminder • Read and distribute the educational material • Share information via newsletters and social media • Talk to your clients and communities and help them lodge complaints • For the next few weeks, ring Fair Trading to report marketers of training: 13 32 20 - Indigenous consumers 1800 500 330 - language assistance 13 14 50 -
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