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Hold Music Company Slapped By ACCC

Please Hold, a UK-based company that provides on-hold music and on-hold marketing services to small businesses, has agreed to amend its contractual terms after an ACCC investigation found they were unfair and “limited consumer guarantee rights.”

The ACCC concerns centred around Please Hold’s automatic rolling over of long-term contracts unless the customer provided written cancellation at least 42 days before the end of the initial contract.

If the customer then tried to cancel, Please Hold would charge “early termination charges equivalent to the payments for the full contract term, less three per cent.”

It goes without saying that this is outrageous.

“The ACCC considered these contract terms were unfair, as the combination of PHMG’s termination clause and the automatic roll-over of the contract had the potential to cause significant financial detriment by requiring customers to, in effect, pay for a service they may no longer have needed, under a contract they thought had expired or had tried to cancel,” ACCC Deputy Chair Mick Keogh said.

“We welcome PHMG’s decision to amend its contracts to address the ACCC’s concerns, including the introduction of a rolling month-by-month contract term after the end of the initial contract period, allowing cancellation at any time with 30 days notice.”

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