The Federal Court has ordered telecommunications provider Superfone to pay $300,000 in penalties for making false and misleading representations and breaching laws designed to protect consumers from unsolicited telemarketing sales, in proceedings brought by the Australian Competition and Consumer Commission (ACCC).

In June 2020, the Federal Court declared that Superfone had contravened the Australian Consumer Law between June 2017 and December 2018 when cold-calling consumers and signing them up to unsolicited new contracts with Superfone.

More than 1400 consumers, including many elderly people, were contacted by Superfone's telemarketing agents.

"Superfone's behaviour was unacceptable. After making unsolicited calls, it misled consumers into entering contracts which the consumers did not want and did not provide them with information about the 10-day cooling-off period or their rights to terminate the contract," ACCC deputy chair Delia Rickard said.

"When some consumers tried to cancel their contracts, they were charged termination fees."

The court found that Superfone's customer base tended to show that Superfone targeted vulnerable consumers, or at least was only successful in securing unsolicited agreements with vulnerable consumers who were less capable of protecting their consumer rights.

"All businesses must comply with the Australian Consumer Law provisions dealing with unsolicited calls and door to door sales, including the 10-day cooling-off period and termination rights. These laws exist to protect consumers when dealing with cold callers and give them the opportunity to change their minds about a purchase or agreement they have made as a result," Ms Rickard said.

"We will continue to take enforcement action against businesses which contravene the unsolicited consumer agreements provisions."

The court also ordered Superfone to email consumers who entered into an unsolicited agreement with Superfone, and subsequently paid a termination fee on cancellation of their contract, advising them to contact Superfone for a full refund of the termination fee.

Superfone is also required to email other consumers whose unsolicited agreement have expired but who are continuing to receive services from Superfone on a month-to-month rolling basis, offering them the opportunity to exit their contract with Superfone without charge.

Superfone admitted liability but contested the penalty amount and other orders.

Were you signed up to a Superfone contract by a cold caller? Will you be seeking a refund?