Defunct company Get Qualified Australia has been ordered to pay $8 million after it was found to have contravened Australian Consumer Law through misleading and unconscionable conduct.
The Federal Court issued the penalty — one of the highest ever awarded for breaches of Australian consumer law — on Wednesday and also ordered its sole director Adam Wadi to pay an additional $500,000.
The Australian Competition and Consumer Commission (ACCC) initiated legal proceedings against Get Qualified in September last year.
The court found the company's misleading conduct occurred through a range of practices including assuring consumers they were eligible for qualifications when they could not actually offer qualifications.
It also told consumers they would be entitled to a "100 per cent money back guarantee" but regularly declined requests for refunds.
Education sector 'infected': judge
Justice Jonathan Beach said the company's misconduct was "serious, extensive and deliberate".
"It took place within the context of a non-existent compliance culture, a cavalier attitude towards consumers, and the knowledge and direct involvement of senior management," he said.
"The contravening conduct generated significant revenue and caused substantial consumer harm."
In the reasons for his judgement, Justice Beach said in recent years the education sector had been "infected by the parasitic practices of operators preying upon the vulnerable and the unwary".
"They have taken unconscientious advantage of those who commendably have sought to improve themselves and their qualifications."
Company did not defend case
Get Qualified, which offered to turn people's practical work experience into qualifications, went into liquidation in March and did not defend the case at trial.
The court also made an order disqualifying Mr Wadi from managing a corporation for seven years.
Justice Beach said Mr Wadi's "conduct and self-justifying arrogance … reflects an individual not suited to managing a corporation".
The ACCC said the size of the penalty was in line with the nature of the breach.
ACCC commissioner Sarah Court said the company "took advantage of vulnerable people trying to advance their career".
"It is important that penalties for breaching the Australian Consumer Law reflect the seriousness of the conduct," she said.
"We believe the substantial penalties imposed in this case do reflect the egregious conduct of both GQA and Mr Wadi."
