The consumer watchdog has launched court action against Acquire Learning, alleging the education services broker signed up customers for courses they didn't need or couldn't afford.
As Acquire earned commissions from telemarketing to students, the students were left with hefty government-funded VET debt instead of the job prospects they were promised, the Australian Competition and Consumer Commission claims.
"The ACCC is alleging that Acquire Learning's telemarketers signed consumers up to courses without taking into account their individual circumstances and misled consumers about their suitability for the course and how the course would improve their employment prospects," the ACCC said on Thursday.
Many consumers who submitted requests for VET FEE-HELP assistance and enrolled in courses as a result of calls from Acquire Learning have subsequently had their enrolments cancelled, and VET FEE-HELP debt annulled, the ACCC said.
The ACCC's action will be heard in the Federal Court, with a case management conference listed for February 4.
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Acquire's executive chairman is former AFL chief Andrew Demetriou.
Managing director John Wall said the alleged "historical matters" occurred between July 2014 and March 2015, and were not a reflection of company's current practices.
"We have formal disciplinary processes to address any compliance breaches by staff, rigorous controls over who our staff can contact and a Customer Commitment Checklist that must be completed and signed by students to help ensure they understand the facts relating to any course they want to do," Mr Wall said.
The ACCC recently launched court action against Empower Institute, alleging that education provider remove and disadvantaged communities, promising a free laptop or cash for new sign-ups.
The watchdog last month launched action against the Phoenix Institute on similar grounds.
