Crazy John’s is in a tight spot with the Australian Competition and Consumer Commission (ACCC) over its advertising which was classified as misleading.

The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court against Mobileworld Operating Pty Ltd (trading as Crazy John’s) for alleged contraventions of the Trade Practices Act 1974 in relation to the promotion of certain of its mobile phone plans.

The ACCC alleges that Crazy John’s has engaged in misleading or deceptive conduct by representing that handsets on its Crazy Phone Plans are available ‘FREE’ or for ‘$0’, when in fact consumers are required to pay for the handsets through higher call rates than those available on comparable plans which do not include a handset.

The ACCC alleges that these representations contravene sections 52 and 53 of the Trade Practices Act.  The ACCC is seeking a range of remedies including declarations regarding the alleged contravening conduct and corrective advertising.

The ACCC’s proceedings utilise the Fast Track List in the Victorian registry of the Federal Court, which is intended to streamline court procedures in matters of this nature, thereby reducing the time and cost of litigation.

A scheduling conference has been provisionally set down for February 29, 2008.

See: www.accc.gov.au