Telecommunications company TPG Internet has been slammed by the Australian Competition and Consumer Commission after conceding that advertising for its “unlimited cap saver” mobile phone plan may have contravened the Trade Practices Act.
The ACCC began investigating TPG after the company published advertisements for the plan between September and December 2008 on television, in newspapers and outdoors.
The ACCC argues that TPG made false representations and engaged in misleading
and deceptive conduct in contravention of the TPA by representing that the “unlimited cap saver” plan includes unlimited calls and text for $59.99 per month when in fact there are multiple exclusions to the plan (including calls to 1800, 13 and 1300 numbers, directory assistance, international calls and SMS, calls to MobileSAT, premium SMS, and calls to operator assistance).
The ACCC also argues that while the ads claimed the plan is available for the purchase price of only $59.99 per month, the actual minimum charge is $79.99 because of an additional $20 SIM card fee payable on registration.
ACCC chairman Graeme Samuel says the case highlights the danger of using certain terms in advertising.
“Companies advertising mobile phone plans should be particularly cautious when using absolute terms such as ‘unlimited’ for plans to which some limits do apply.
“To avoid misleading consumers, any qualifications of an offer of ‘unlimited’ calls or text must be prominently stated and not so significant that they negate the headline message.”
TPG has agreed it will not use mobile phone plan ads using the term “unlimited” without appropriate disclaimers. It will also publish a corrective notice on its website.
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James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
