A Federal Court has found that Broadband provider TPG, has been selling dodgy ADSL2+ packages.
The company which buys up cheap advertising real estate was accused of luring people into cheap $29.99 a month deals that when examined were found to be questionable.
The Federal Court in Melbourne found advertisements for TPG Internet Pty Ltd’s $29.99 Unlimited ADSL2+ campaign to be false and misleading.
“Telecommunications companies must include clear and accurate information for consumers in their advertisements and this should provide a further warning to the telecommunications industry that they must get their advertisements right,” ACCC chairman Rod Sims said.
Justice Murphy found that the advertisements represented that consumers could acquire the broadband service for $29.99 per month without acquiring any additional service or paying any additional monthly charge.
In fact, the ADSL2+ plan was $59.99 per month because the ADSL2+ service was only available when purchased with home line rental from TPG at an additional cost of $30 per month.
In his judgment, Justice Murphy stated “it is an unfair trade practice to require consumers to find their way through to the truth past advertising stratagems which have the effect of misleading or being likely to mislead them.”
TPG’s earlier advertisements were also found to be misleading as they did not disclose the obligation to pay additional up front charges including a $129.95 set up fee and a $20 home phone deposit. These advertisements also did not prominently specify the minimum charge.
This case forms part of the ACCC’s ongoing enforcement and compliance campaign to improve the standard of advertising in the telecommunications industry.