ACCC sounds warning to IT trainers with judgement against Zanok

Stan Beer
Wednesday, 07 October 2009 03:15

IT People - Training

The ACCC went on to say:

Justice Edmonds said that the conduct "constituted more than simply taking advantage of a superior bargaining position but involved an unconscientious exploitation of another's inability or diminished ability to conserve his or her own interests."

The court also declared that Zanok engaged in misleading and deceptive conduct by making representations to IT job seekers on its websites, in job advertisements placed by Zanok or on its behalf, and in statements made in interviews and during training inductions, that:

    * Zanok is a global company that has developed and sells functional IT software, when this is not in fact true
    * Zanok had paid employment opportunities in Melbourne and Sydney, when in fact Zanok was offering IT training for which applicants would be required to pay a fee of up to $4,700
    * Zanok was offering IT scholarships, when this was not in fact true
    * Zanok was offering an unqualified guarantee of paid employment on completion of IT training, when in fact it was not in a position to guarantee paid employment to all persons who completed the training course
    * Zanok would pay all persons who completed the training course a salary of a minimum of $45,000, when in fact it was not in a position to pay that salary to all persons who completed the training course, and
    * Zanok offered a referral program whereby trainees would be paid $200 for each individual they referred to Zanok who signed up for the IT training course, when in fact none of the trainees who have referred others to the program have received payment.

The court also declared that Zanok accepted money for IT training when Zanok intended to supply training that was materially different from the promoted training, or knew, or should have known, that it would be unable to supply the training for which payment was accepted.

The court declared that Zanok's directors were knowingly concerned in the conduct of Zanok.

The court made various injunctions restraining the future conduct of Zanok and its directors. These included an order restraining them for a period of five years from soliciting persons who are seeking employment to enter into an agreement in relation to IT training or make payment for IT training, until a cooling off period of seven days has passed after the person is made aware that they are required to complete paid training.

The court ordered that the respondents pay the ACCC's costs.

"This case sends a clear message that the ACCC will not hesitate to take action against persons who seek to take advantage of, or mislead, international students and those seeking residency in Australia about training courses or job opportunities," ACCC chairman, Graeme Samuel, said today.