ACCC Sues Mobile Phone Provider For Selling Plans On Unavailable Networks

Being sold a mobile plan on a network that turns out not to be available where you need it is an all-too-common experience. A current ACCC court case demonstrates just how extreme the practice can be.

In a case due to go before the Federal Court in Darwin on May 17, the ACCC alleges that telemarketer EDirect sold and accepted payment for mobile phone contracts to consumers even though the service in question was not available at the address provided by those consumers:

The ACCC alleges EDirect engaged in misleading and deceptive conduct and misrepresented the performance characteristics, uses or benefits of its mobile telecommunication services, namely that the services would work in areas where the service in fact could not work.

The ACCC didn't specify which network EDirect was using, but its site suggests it buys network access wholesale from Optus.

One of our more consistent bits of advice at Lifehacker is to always check mobile reception in your area before signing up to any plan. From that perspective, buying a mobile phone or phone plan from a telemarketer is a really bad idea. (Remember also that telemarketers are restricted in when they can place calls.) Disturbingly, it's not the first time that EDirect (which has also traded as Viptel) has been taken to court for this kind of practice -- we'll keep an eye on the outcome.

ACCC


Comments

    Optus, and now Vodafone give you a month to trial the coverage on postpaid plans. If the coverage is unsuitable, you can bail out in that first month.

    Now if only they would sue Optus for telling me my mobile would work at home only to have me have zero reception for the next two years.

    so, can we take vodafone to court for selling a network that is unavailable to be used?

      Ummm, there's already a class action in process for precisely that reason

    this mob are shonks i cancelled a verbal contact within the first few days cos they were going to take 3 days to get my same number in use on the new phone they sent so i rang them back and said no way they can have all there gear back and dont take any money out of my account well i sent the gear back and they are still taking money after telling me it wouldnt happen! i guess i will have to change my bank account number to stop these shonks.

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