Feeds

Mobile Active stung for Bieber fraud fever

Fined $225k for dodgy ads

  • alert
  • submit to reddit

The essential guide to IT transformation

Mobile ringtone and gaming provider Mobile Active has been busted by the Australian Competition and Consumer Commission for false and misleading advertising practices from two of its subsidiaries Global One Mobile Entertainment and 6G.

A Federal Court has forced the company to pay fines totaling AUS$225,000 for the offences which involved four television advertisements selling what appear to be one-off products but were actually subscription based services.

The products included mobile phone ringtones from Justin Bieber and mobile games including Space Invaders.

The Federal Court found that the companies generated $58,064 in revenue from the ads, and unsurprisingly the Bieber promotion was responsible for more than half of the total sales.

This promo charged users a joining fee of $13.20 with the company collecting an additional payment of $6.60 every six days after signing up.

While the Bieber commercial had small text at the bottom of the screen stating it was a subscription service, the court found that the text was difficult to read and the explanation inadequate.

"The use of the word subscribe in my view was totally inadequate to inform the adult viewer, let alone a viewer under the age of 18, that what was being offered was a subscription to a broader service," Justice Annabelle Bennett said. Mobile Active said that it is considering appealing the decision.

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
EE fails to apologise for HUGE T-Mobile outage that hit Brits on Friday
Customer: 'Please change your name to occasionally somewhere'
Time Warner Cable customers SQUEAL as US network goes offline
A rude awakening: North Americans greeted with outage drama
We need less U.S. in our WWW – Euro digital chief Steelie Neelie
EC moves to shift status quo at Internet Governance Forum
BT customers face broadband and landline price hikes
Poor punters won't be affected, telecoms giant claims
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.