ACCC Shuts Down Solenet and Sure Telecom
A Federal Court has ruled in the favor of the ACCC today, ordering James Harrison, director of SoleNet and Sure Telecom, pay a penalty of $250,000 and be restrained from operating within the telecommunications industry for two years.
In December 2016, Justice Moshinsky found the SoleNet/Sure Telecom Companies had engaged in unconscionable conduct in connection with the supply of telecommunications services.
The court found that between 2013 and 2015, the SoleNet/Sure Telecom Companies were restructured in part to avoid regulatory sanctions and unpaid debts to regulators.
As part of this process, customers were transferred from one SoleNet/Sure Telecom Company to another without their knowledge and were then subjected to early termination or cancellation fees.
In delivering today’s judgment, Justice Moshinsky noted “the contravening conduct was serious, deliberate and extended over a period of about two to three years” and “was not ad hoc, but systemic and planned”.
His Honour also noted “Mr Harrison, the sole director of the companies, was ‘hands on’ in managing their day-to-day operations and was intimately involved in their conduct”.
Accordingly, he’s been disqualified Mr Harrison from managing corporations for three years from 1st of April 2017.
ACCC Deputy Chair Delia Rickard says “the disqualification of Mr Harrison as a director sends a clear message that directors have responsibility to ensure their businesses comply with the Australian Consumer Law.”