One.Tel Limited - s.87B undertaking

In July 2000, the ACCC commenced an investigation into complaints that it had received on a nationwide basis in relation to the promotion of One.Tel's 'Switch' product. One.Tel, through its agents, had been promoting its Switch product by means of door-to-door sales since April 2000 and outbound telemarketing since May 2000. The complaints concerned transfers to One.Tel made without the consumer's consent or informed consent.

As a result of its investigations the Commission formed the view that One.Tel's agents and those agent's representatives had breached Part IVA and V of the Act and that One.Tel was liable for their conduct. Specifically, the Commission concluded that between April 2000 and October 2000, the representatives had induced transfers without the consent or informed consent of the consumers concerned. One.Tel provided an undertaking that it will:

• write to all affected customers to apologise;
• review all customer complaints;
• engage an independent assessor to review their selling methods;
• sign the telecommunication industry code of conduct, the 'Selling Practices and Customer Transfer Code', once the Code has been registered with the Australian Communications Authority; and
• pay up to a maximum of $500,000 towards a public fund to educate and inform consumers of their rights in relation to transferring telephone companies and the obligations of telecommunications companies under the Trade Practices Act 1974.