The competition watchdog has alleged that mobile phone retailer Crazy John’s misled consumers in a high profile advertising campaign offering “free” mobile phones.
The Australian Competition and Consumer Commission yesterday launched legal action against Crazy John’s for breaching the misleading and deceptive conduct provisions of the Trade Practices Act.
The ACCC will argue that Crazy John’s breached the act by advertising mobile phones on its Crazy Phone Plans as available “free” or for “$0”, when in fact consumers pay for the mobiles through higher call rates than those available on comparable plans that do not include a handset.
Admission that the advertising was misleading and advertising to publicly correct the alleged misrepresentation are among the remedies the ACCC will seek.
Crazy John’s managing director Brendan Fleiter says the company will meet with the ACCC and is happy to work with it to alleviate concerns.
The initial hearing in the legal proceedings in the Federal Court is scheduled for 29 February 2008.