The federal government has started proceedings in the Federal Court against Australian Institute of Professional Education Pty Ltd (AIPE). The action has been initiated following a joint investigation by the Australian Competition and Consumer Commission and NSW Fair Trading.
It has been alleged that AIPE made false or misleading representations and engaged in unconscionable conduct, in breach of the Australian Consumer Law while marketing VET FEE-HELP funded courses in areas in at least New South Wales, Queensland and Western Australia, between January 2013 and December 2015.
According to ACCC, AIPE represented to prospective students that they would receive a free laptop or tablet and that the course(s) were free if the consumer did not earn approximately more than $50,000 per annum. In fact, the laptop or tablet students received were on loan, and students enrolled in the courses incurred a VET FEE-HELP debt payable to the Commonwealth Government.
Between 1 January 2013 and 1 December 2015, AIPE is alleged to have enrolled 15,426 students in diploma courses. It received more than $210 million in Commonwealth funding.
AIPE is a provider of VET FEE-HELP Diploma courses, costing from $12,160 to $19,600 per course. It marketed and sold these courses using face-to-face marketing, including door-to-door sales, as well as telemarketing. Between 1 January 2013 and 1 December 2015, it is alleged that AIPE enrolled approximately 15,426 students in VET FEE-HELP Diploma courses and was paid in excess of $210.9 million by the Commonwealth for those enrollments.
"AIPE marketed its courses to some of the most vulnerable and disadvantaged groups in the Australian community, including consumers from low socio-economic backgrounds and consumers with intellectual disabilities. Further, for these online courses, some people were enrolled who had limited reading and writing skills, could not use a computer, and were not able to use email," said ACCC chairman Rod Sims.
AIPE is the fourth private college the ACCC and the Commonwealth have instituted proceedings against for marketing practices which allegedly breach the Australian Consumer Law.
AIPE said in a statement that it would comment only after it has received ACCC pleadings.
"AIPE, as a leading provider of vocational education, seeks to comply with all of its obligations under the Australian Consumer Law and has volunteered significant amounts of information to the ACCC to demonstrate this," the statement read.
