Internet service provider TPG has been fined $2 million by the Federal Court for 'false and misleading' advertising in a case initiated by the Australian Competition and Consumer Commission (ACCC).
The Federal Court found a national advertising campaign for TPG’s $29.99 Unlimited ADSL2+ service was misleading as minimum charges and additional up-front charges were not disclosed in the ads.
The Court also found the campaign misleading as it was not prominently stated the plan was only available when bundled with home phone-line rental for $30-per-month.
“[TPG's] conduct was seriously misleading and affected a diverse class of users and potential users of broadband services,” Justice Murphy noted in his ruling. “[TPG understood] there was a risk that its conduct might constitute misleading conduct [and] should have adopted a more cautious approach”.
Justice Murphy said the $2 million fine 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.”
TPG has been served with injunctions and ordered to maintain a trade practices compliance program for three years. The company will have to publish corrective notices and pay the ACCC’s court costs.
“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 in a statement. “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. The ACCC will continue to take court action in order to achieve this.”
The ruling follows a $13,200 fine served to TPG in March relating to its 'free 500 VoIP minutes' campaign.
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