Credit reporting agency fined $3.5m

The Federal Court handed down the fine after the Australian Competition and Consumer Commission initiated proceedings against Equifax in March of this year.

The ACCC alleged breaches of the Australian Consumer Law, stating that Equifax made a range of false or misleading representations to consumers, including that its paid credit reports were more comprehensive than the free reports.

Equifax, formerly Veda Advantage, admitted to breaching the consumer law in 2016 and 2017 when its representatives made false or misleading representations to consumers during phone calls.

The company told consumers they would be charged a one-off payment for their packages but neglected to tell them the payments would automatically renew.

ACCC commissioner Sarah Court said that Equifax had caused people to spend money when they were not required to.

“Equifax’s conduct caused people to buy credit reporting services in situations when they did not have to,” the commissioner said in a statement.

Equifax also admitted to acting unconscionably by using unfair sales tactics against three vulnerable consumers.

“It is appalling that Equifax used unfair sales tactics on consumers who were vulnerable,” Ms Court said.

She added that consumers had a right to receive accurate information from companies when seeking advice and services.

“We considered it unacceptable that consumers were denied the knowledge and proper opportunity to opt out of recurring charges from Equifax,” Ms Court said.

Equifax has been ordered by the court to establish a consumer redress scheme which will allow affected consumers to seek refunds for a 180-day period.

“This result sends a strong message to businesses that making misrepresentations and acting unconscionably against consumers will not be tolerated,” the ACCC commissioner said.

The case is the latest to be brought against a company for misrepresentations, after a construction company agreed to pay more than $50,000 in penalties after ASIC raised concerns that it had produced misleading advertisements aimed at first home buyers.

Home builder Metricon Homes Pty Ltd (Metricon) has paid $50,400 in penalties after the Australian Securities and Investments Commission (ASIC) issued the company with four infringement notices relating to misleading advertising aimed at first home buyers.

According to the corporate regulator, Metricon’s “2K on your way” campaign for its HomeSolution house and land packages (HomeSolution) contained “misleading representations about eligibility to qualify”. 

[Related: Equifax Australia ‘not compromised’ by security breach]