Ahmed's Situation

Ahmed is a 19-year-old man from Casino, NSW. He left school at the age of 16 with the intention of completing a trade apprenticeship, but never managed to complete his training.

One day, a man named Edward approaches Ahmed outside of Centrelink. Edward tells Ahmed that he works for a company, called "Vultures Inc." that runs a local training course for young unemployed people and that he would like to offer Ahmed a place in the training program. Edward tells Ahmed that the training program has a 95% success rate in placing its graduates in employment within three months of graduation and that he can offer Ahmed a huge discount on the course.

Ahmed expresses his concern that he cannot afford to pay for the training course, but Edward insists that he won't have to pay anything until after he is working and that then it will only cost him $20 a week.

He then convinces Ahmed to sign a form that he brings up on his iPad and he tells him that he will email him all of the details later that day.

That evening Ahmed receives an email from Vultures Inc. detailing what he has signed up to.

The training course is actually held in Byron Bay, some 76 km away, and Ahmed does not own a car. Also, the training course also runs for just two weeks and the payment plan (that he has apparently committed to) has him paying $20 a week for 30 months (a total of $2,600).

Finally, despite Edward's assurances, the contract that he has signed says that he must begin paying immediately after graduation regardless of his employment status and that Vultures Inc. are under no obligation to assist him in finding employment.

Advise Ahmed as to whether there is any action he could take under the Australian Consumer Law in relation to his dealings with 'Vultures Inc' and Edward. Please refer to any relevant cases in your answer.

[Hint: search online for the ACCC's recent case against the Phoenix Institute of Australia.] To answer this problem question, we recommend that you use the HIRAC method: