The consumer watchdog has started federal court proceedings against telecoms service providers SoleNet and Sure Telecom for repeatedly breaching Australian consumer law.
The ACCC said it has taken to court 11 companies trading under the SoleNet or Sure Telecom name, alleging unconscionable conduct and harassment of customers.
The Australian Competition and Consumer Commission has levelled charges against James Harrison and companies controlled by him.
It said these companies transferred to other group firms customer contracts without their knowledge or consent, sought early termination or cancellation fees even without a right to payment, and referred these alleged dents to a debt collection agency.
"The ACCC's case is that customers were not informed about, and did not consent to, their telecommunications contracts being transferred to other Harrison companies, which the ACCC alleges was largely to avoid regulatory difficulties and debts," ACCC chairman Rod Sims said.
The regulator is seeking consumer redress, penalties, corrective advertising, a disqualification order against Mr Harrison and costs.
The Sydney-based telecoms provider has been under fire from the Australian Communications and Media Authority for repeatedly breaching the telecommunications consumer protection code.
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