‘Max Cap’ lands Optus in Hot Water
This entry was posted on Thursday, May 19th, 2011 at 11:28 pm and is filed under General, ISP and Telco Law, IT Law, Trade Practices Law. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
The ACCC has fined Singtel Optus Pty Ltd $178,000 for misleading conduct arising out of its ‘Max Cap’ marketing campaign.
The ACCC’s view is that the Optus’ Max Cap advertisements:
The advertisements at issue contained the Max Cap $49, which wasn’t a cap, but rather the minimum a customer would need to spend.
In commenting on the conduct of concern to the ACCC, acting ACCC Chairman Mr Peter Kell said:
“If you advertise a service as a ‘$49 Max Cap’ when $49 is the minimum that consumers have to pay, then you risk breaching the law by misleading consumers about the cost of the service,” and “Claims that a service allows consumers to call ‘anyone’ are likely to be misleading if the reality is that some types of calls are excluded“.
All ISPs and Telcos should have a process in place to review advertisements, not only to ensure compliance with the Competition and Consumer Act 2010 but also the Telecommunications Consumer Protections Code.