Dodgy college hit with eye-watering fine

A SYDNEY training college has been slapped with the biggest fine ever imposed under Australian Consumer Law after “misleading vulnerable and disadvantaged” students into believing their courses were free.

The Federal Court has ordered the Australian Institute of Professional Education to pay $153m in penalties after it was found to have engaged in “unconscionable, misleading or deceptive” conduct.

In 2019, the college was found to have misled students by telling them their courses were free despite students building up VET FEE-HELP debts of up to $20,000. It also enticed potential students to enrol in online diploma courses by offering “free” laptops.

The college enrolled up to 16,000 students and received $210m from the commonwealth between May 2013 and December 2015 for enrolling the students under the VET FEE-HELP scheme.

At least 70 per cent of enrolments in that time were affected by the deception. Federal Court Justice Robert Bromwich imposed $150m in penalties for the unconscionable conduct and $3m for contraventions of 12 customers.

Proceedings began against AIPE in 2016 following a joint investigation by the ACCC and NSW Fair Trading. Due to the institution going in liquidation, the penalties will not be paid.

“Substantial penalties are called for when a commercial enterprise systematically predates on both a government education support scheme designed to help disadvantaged members of the Australian community and, consequently, upon those consumers,” Justice Bromwich said.