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ABC News
Business

Telemarketers told schools the cost of ads would be covered … then billed them

An online directory and its owner have been fined a total of $120,000 for misleading a number of South Australian schools to sign up to online advertising.

Lukeleo Pty Ltd and its director Luke Farrell were fined by the Supreme Court after admitting to making various false and misleading representations.

Mr Farrell was also disqualified from managing a corporation for 12 months.

The business, which operated an online directory known as BIG Pages, contacted seven schools and kindergartens in a misleading manner, leaving staff with the impression they were renewing an existing contract to advertise in the directory.

Telemarketers also implied that the service was either free or that the cost would be covered by the Education Department, but the schools were subsequently billed $995 for the online ads.

Justice Malcolm Blue said claims by telemarketers to school staff that there was no cost associated with the ad were "blatantly false".

"The contraventions were deliberate," he said.

Lukeleo was fined $90,000 while Mr Farrell was fined $30,000.

Mr Farrell has already repaid each of the schools.

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