Feeds

TPG hit with AUD$2m fine

ACCC takes action on tricky telco ads

Designing a Defense for Mobile Applications

The Australian Competition and Consumer Commission has again taken a local telco to task for dodgy advertising practices.

This time the offender is TPG Internet, which has has been ordered by the Federal Court to hand over AUD$2 million in civil pecuniary penalties for false and misleading national advertising campaign.

The ISP was found to have failed to prominently specify the minimum charge in the campaign and therefore was held to have misled customers.

TPG has also been ordered to publish corrective notices, maintain a trade practices compliance program for three years and to pay the ACCC’s costs. The Court also imposed injunctions restraining TPG from engaging in similar conduct in future.

Justice Murphy said the sizeable penalty was “necessary to make it clear to TPG and to the market that the cost of risking a contravention cannot be regarded as merely an acceptable cost of business”.

These orders follow the Federal Court finding that TPG’s $29.99 Unlimited ADSL2+ campaign was false and misleading as the plan was only available when purchased with home line rental from TPG. Earlier TPG advertisements were also found to have failed to specify the minimum charge and were misleading for not disclosing additional up front charges.

“This decision should send a strong warning to telecommunications and internet providers that they cannot continue to take risks in their advertising or they could end up in court and be exposed to substantial penalties,” ACCC Chairman Rod Sims said.

TPG is no stranger to the ACCC’s watch as in March 2012 it was hit with fines of $13,200 in relation to advertising of a ‘free 500 VoIP minutes’ offer.

“The ACCC is committed to taking a hard line to secure a culture of compliance by telecommunications providers and improve marketing in the telecommunications industry,” Sims warned.

In other recent telco misdemeanours, Dodo was fined in January 2011 for $26,400 in relation to pricing of its ‘unlimited’ broadband plans, in May Optus was fined $178,200 in relation to its ‘Max Cap’ plan advertising and in March the Full Federal Court also imposed a pecuniary penalty of $3.61 million on appeal, finding that Optus engaged in misleading and deceptive conduct in relation to the speed of broadband plans. ®

Securing Web Applications Made Simple and Scalable

More from The Register

next story
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
MPs wave through Blighty's 'EMERGENCY' surveillance laws
Only 49 politcos voted against DRIP bill
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Delaware pair nabbed for getting saucy atop Mexican eatery
Burrito meets soft taco in alleged rooftop romp outrage
LightSquared backer sues FCC over spectrum shindy
Why, we might as well have been buying AIR
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.