27-05-2025
Captain Cook College fined more than $30 million for overcharging 5,500 students for courses most never logged in to
An Brisbane-based vocational college will pay $30 million in fines after engaging in "unconscionable conduct" where thousands of students racked up debts for courses that most never logged on for.
Captain Cook College faces tens of millions of dollars in penalties after it was taken to Federal Court by the Australian Competition and Consumer Commission.
The college, which has received millions from the Federal Government, removed consumer safeguards in 2015 from its enrolment and withdrawal processes that are designed to protect students from being overcharged.
This led to about 5,500 students facing debts under the former VET FEE-HELP loan program totalling more than $60m.
The ACCC said the 'vast majority' of affected Captain Cook College students failed to complete any part of their course and about 86 per cent never logged in to their online course.
The Federal Government was forced to waive the debts of the affected students and withheld some payments from the college.
ACCC chair Gina Cass-Gottlieb said the college's actions had ramifications for both the students and the government.
'Captain Cook College's conduct not only cost taxpayers tens of millions of dollars, but it also caused distress to the thousands of consumers enrolled in their courses who for many years were told they had significant debts to the Government,' Ms Cass-Gottlieb said in a statement.
The college has been fined $20m for unconscionable conduct and $750,000 for making false or misleading representations to students.
Its parent company Site Group International is facing a $10m penalty while Site's former chief operating officer Blake Wills has received a $400,000 fine and is banned from managing corporations for the coming three years.
Ms Cass-Gottlieb said the consumer watchdog was pleased with the outcome as it 'sends a message to all businesses, including those seeking to obtain government funding, that they must comply with the laws which protect consumers'.
'The judgment also shows the ACCC's determination to pursue individuals in appropriate cases,' she said.
The ACCC first began proceedings against Captain Cook College in 2018 and it was first found guilty in 2021.
Captain Cook College, Site Group and Mr Wills appealed this decision, but it was upheld in August 2024.
The college was established in 1998 and acquired by Site in 2014.
