The Australian Communications and Media Authority (ACMA) has formally warned Rainbow Flag Directory, an organisation that claims to be claims to publish a nationwide LGBTI magazine, for breaching the telecommunications rules regarding spam communication.
Following consumer complaints ACMAÂ found that between October 2019 and February 2020 Rainbow Flag sent five commercial messages to email addresses without consent, breaching the Spam Act 2003.
At the same time the Herald Sun has revealed that the owner of the business, Shane McGrath, is due to appear in court later this month after an investigation by Fair Work Australia (FWA). It is alleged that the business underpaid five workers between June and August 2019.
Fair Work Australia believe four of the employees were not paid any wages at all, while a fifth complainant was allegedly underpaid. The company was served with a compliance notice but as they have not responded additional legal action is now in progress. The government watchdog alleges that the company regularly hires telemarketing staff to cold call business and try to persuade them to buy advertisements in their online directory.
The Victorian based PEBS Group Pty Ltd was registered as a company in 2016 with four associated business names, LGBTI Directory, Same Sex Marriage Directory, Same Sex Marriage Guide and Seniors View. In their marketing materials and correspondence their sales staff claim they are the ‘number 1 website for the LGBTI community’.
The company’s sales staff offer a package deal that includes advertising in all four of their websites and in their A5 sized magazine which they claim is available in every state of Australia. However a quick Google search will reveal statements from dissatisfied clients, with some questioning if the print magazine even exists.
In Victoria, deliberately underpaying workers is a criminal offence. The PEBS group could face a fine of up to $31,500, while the directors of the company could face personal fines of up to $6,300. The court could also order them to pay any missing wages, as well as superannuation and interest.
OIP Staff
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