ACCC launches legal proceedings against Phoenix Institute of Australia over its VET FEE-HELP diploma courses

The Australian Competition and Consumer Commission has launched court actions against Phoenix Institute of Australia Pty Ltd and Community Training Initiatives Pty Ltd following a joint investigation by the market watchdog and NSW Fair Trading. It alleges that the training institute has breached the Australian Consumer Law by making false and misleading representation while marketing for its VET FEE-HELP diploma courses.

The Phoenix runs VET FEE-HELP diploma courses in which students are enrolled on paying a fee of $18,000 to $21,000 per course. Phoenix allegedly enrolled 9,000 students in 17,000 courses in New South Wales, Victoria, Queensland, the Northern Territory and Western Australia and made an excess earning of $100 million for those enrolments.

“We allege this conduct targeted some of the most vulnerable groups in the Australian community, including consumers from low socio-economic backgrounds and consumers with intellectual disabilities,” ACCC Chairman Rod Sims said in a statement. “Further, for these online courses, some people were enrolled who could not use a computer, and were not able to email. Not surprisingly, course commencement rates were extremely low.”

Sims added that the ACCC alleged that the institute would deceive people by saying that the courses are free and they would also receive a free laptop on enrolling with the courses.

"People sometimes with intellectual disabilities, sometimes people who couldn't use a computer, but the courses were all online. Not surprisingly the commencement rates were very low," he added.

Under the VET FEE-HELP system, the students who enrol for the courses can study it for free and would not require to repay the amount until they earn more than $54,000.

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