The Federal Court has found failed skills training company Get Qualified Australia Pty Ltd engaged in unconscionable and misleading conduct by promising customers qualifications it was not able to legally offer.
In a case brought by the Australian Competition and Consumer Commission, the court found Get Qualified made false and misleading representations by offering a money-back guarantee that was almost always declined and claiming places in courses were limited.
It also found the company, which went into liquidation in March, failed to provide the service promised and used unfair sales tactics to pressure consumers into enrolling.
More than 5,000 customers paid between $750 and $8500 to enrol in a course with Get Qualified and did not receive a qualification, the ACCC said on Tuesday.
ACCC commissioner Sarah Court said the company took advantage of vulnerable people wanting to better their careers.
"In reality, Get Qualified could not directly offer qualifications," Ms Court said in a statement on Tuesday.
"This conduct has resulted in significant personal and financial stress for people who put a large amount of time, effort and money into trying to get a qualification."
The consumer watchdog instituted proceedings in the Federal Court in September last year and also brought proceedings against Get Qualified's sole director, Adam Wadi.
The court found Mr Wadi was knowingly concerned in the company's misleading and deceptive conduct and unsolicited consumer agreement breaches.
A hearing on relief against both Get Qualified and Mr Wadi will be held on a date to be determined by the court.
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