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TPG falls foul of ACCC for false ads

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National broadband carrier TPG has been busted over an "Unlimited ADSL2+" campaign that the Federal Court has decided was misleading.

The Federal Court in Melbourne found advertisements for TPG Internet's $AU29.99 "unlimited broadband" service to be false and misleading as the real cost of the service was $AU59.99 because it would only work with a home line rental attracting an additional cost of $AU30 per month.

"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.

The campaign included TV, newspaper, radio and website advertisements.

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 $AU129.95 set up fee and a $AU20 home phone deposit. These advertisements also did not prominently specify the minimum charge.

TPG is being used as a poster child for bad advertising practices in the telco industry by the ACCC, which is enforcing a crackdown on compliance.

A directions hearing will be held on Tuesday 15 November 2011 to set a date for a penalty hearing. ®

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