The Federal Court has imposed substantial penalties on Captain Cook College, ordering the vocational institution to pay $20 million for systemic unconscionable conduct and an additional $750,000 for making false representations to students regarding online diploma courses under the former VET FEE-HELP loan program.

From September 2015, Captain Cook College removed essential consumer safeguards from its enrolment and withdrawal processes, leading to thousands of students incurring significant debts without engaging in their courses. Approximately 5,500 students were left with VET FEE-HELP debts exceeding $60 million, with most failing to complete any part of their courses.

The Australian Competition and Consumer Commission (ACCC) highlighted the distress caused to consumers, many of whom were misled into believing they owed substantial debts to the government. The court also imposed penalties of $10 million on Site Group International Limited, the parent company of Captain Cook College, and $400,000 on Blake Wills, the former COO, who was found to be knowingly involved in the college's misconduct.

In addition to financial penalties, the court disqualified Mr. Wills from managing corporations for three years. This ruling follows two unsuccessful appeals by Captain Cook College, Site Group, and Mr. Wills against the findings of unconscionable conduct.

The ACCC expressed satisfaction with the court's decision, emphasizing the importance of compliance with consumer protection laws, especially for businesses receiving government funding. The court also ordered costs in favor of the ACCC.

In a related case, former CEO Ian Cook admitted to being knowingly involved in the college's unconscionable conduct and was similarly disqualified from managing corporations for three years, along with a penalty of $250,000.

Captain Cook College, established in 1998 and acquired by Site Group in 2014, ceased substantive trading in 2016 and entered voluntary administration in March 2025. The ACCC initiated legal proceedings against the college and its affiliates in November 2018, leading to the recent court rulings.