Gotalk compensates for misleading and harassing telemarketing

The Australian Competition and Consumer Commission (ACCC) has accepted court enforceable undertakings from Gotalk concerning the conduct of its overseas telemarketing agents, said ACCC chairman, Graeme Samuel.

"Australian businesses using outsourced telemarketers must control what the agents are doing," he said. "Ultimately, if the telemarketers breach the law, the business will be held responsible."

The ACCC investigated complaints from consumers who had been contacted by Gotalk telemarketers between 2004 and 2007.

A number of complaints alleged the telemarketers had made a number of incorrect representations. These include calling on behalf of the consumer's current carrier, that Gotalk was an owner, subsidiary, agent or reseller of the consumer's current carrier and that the consumer was required to change their carrier to Gotalk. Other complaints concerned the price and/or effect of the terms and conditions of Gotalk services and that changing to Gotalk would not compromise any benefit they currently enjoyed for bundling multiple services with one carrier.

According to Samuel the complaints also suggested Gotalk's telemarketers contacted some consumers with great frequency, despite those consumers making it clear that they did not wish to be contacted, continuing to contact them until they transferred to Gotalk.

Following investigations, the ACCC formed the view that Gotalk telemarketers had breached the fair trading provisions of the Trade Practices Act 1974 prohibiting false or misleading representations and harassment or coercion.

Gotalk accepted that, given the large number of consistent consumer complaints, it was likely that its telemarketers engaged in the alleged conduct and admitted that, if proven, the conduct would breach the fair trading provisions of the Act.

Samuel warned that companies cannot escape their responsibilities by relying on agents to handle compliance.

"Companies must police outsourced telemarketers as they would their own employees, especially if the telemarketers are located overseas. Complaints indicate telemarketers can engage in all sorts of unacceptable conduct if they are not kept under control."

Gotalk's undertaking also includes the letter to its customers, the compliance program and the corrective advertisement, will be available on the undertakings register of the ACCC website.