training providers & marketers...resolving disputes (vet fee-help)• after the census date, if...
TRANSCRIPT
Training Providers & Marketers
Stephen Bailey
Project Officer | National ProjectsCompliance & [email protected] 02 9895 0515www.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)
• High average value – over $4,500 in NSW
1314
15241618
353
428 490 555 595
0
500
1000
1500
2000
31 Dec 11 30 Jun 12 31 Dec 12 30 Jun 13 31 Dec 13 30 Jun 14
National
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 t o
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 & Enquiries
Education
Compliance & Enforcement
Working with other agencies and providers
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 Tradin g
(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 misleadin g 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 i f
there are ‘special circumstances’:- Write to training provider to cancel enrolment & lo an
- If declined, request internal review from training provider
- External review at Administrative Appeals Tribunal
- If training provider ceased training > Dept of Educa tion
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