Captain Cook College, a vocational college which offered diploma-level courses supported by tens of millions of dollars from the Federal Government VET FEE HELP scheme, has had its High Court appeal from a decision of the Full Federal Court dismissed.
The High Court upheld findings that Captain Cook College engaged in systemic unconscionable conduct from 7 September 2015, when it removed consumer safeguards from its enrolment and withdrawal processes, in order to secure additional government funding for online diploma courses under the former VET FEE-HELP scheme.
The High Court also dismissed appeals by Captain Cook College's parent company, Site Group International Limited (Site) and Blake Wills (the former COO of Site) against findings that they were both knowingly concerned in Captain Cook College's system of unconscionable conduct.
"We welcome the upholding of the Court's finding of systemic unconscionable conduct by Captain Cook College as well as the finding that Site and Mr Wills were knowingly concerned in this conduct," ACCC Commissioner Liza Carver said.
"We brought this case because there was clear evidence that Captain Cook College enrolled vulnerable and disadvantaged consumers in courses they were unlikely to ever complete or receive any vocational benefit from despite incurring a large VET FEE-HELP debt. Over 90 per cent of those consumers did not complete any part of their online course, and about 86 per cent of them never even logged into their course."
- "With the involvement of its parent company Site and Site's COO Mr Wills, Captain Cook College sought to maximise its profit at the expense of vulnerable students who were left with a debt, and at the expense of the Commonwealth, by claiming more than $50 million under the VET FEE HELP scheme," Ms Carver said.
The case will now return to the Federal Court for a hearing on relief orders, including penalties and costs.
Background
Productivity Partners Pty Ltd trading as Captain Cook College was a provider of online VET FEE-HELP diploma courses.
Captain Cook College was established in 1998 and was acquired by Site Group in 2014. It ceased substantive trading at the end of 2016.
The ACCC commenced proceedings against Captain Cook College, Site Group, Ian Cook (the former CEO of Captain Cook College) and Mr Wills in November 2018.
In July 2021 the Federal Court found that Captain Cook College engaged in a system of unconscionable conduct and made false or misleading representations to prospective students in relation to online diploma courses following contested proceedings. The Federal Court found that Mr Wills and Site Group were knowingly concerned in Captain Cook College's system of unconscionable conduct.
In April 2023, the Full Federal Court upheld the majority of these findings following an appeal by Captain Cook College, Site Group and Mr Wills.
In May 2023, Captain Cook College, Site Group and Mr Wills appealed to the High Court.
The ACCC and the Commonwealth have previously obtained judgments in relation to educational colleges against Unique International College, Cornerstone Investment Aust Pty Ltd (trading as Empower Institute), Australian Institute of Professional Education and Acquire Learning. The ACCC was also awarded record penalties of $438 million against Phoenix Institute of Australia Pty Ltd and its marketing arm Community Training Initiatives Pty Ltd.
VET FEE-HELP was an Australian Government loan program that assisted eligible students to pay their tuition fees for higher level vocational education and training (VET) courses at the diploma level and above, undertaken at approved VET FEE-HELP providers. The program was replaced by VET Student Loans from 1 January 2017.
