Advertisements for internet service provider TPG have been found to be false and misleading by a Federal Court in Melbourne.
The campaign for TPG's $29.99 Unlimited ADSL2+ product ran across television, newspaper, radio and website advertisements. Justice Murphy found that the ads made it appear as if consumers could acquire broadband service for $29.99 per month without needing to acquire any additional service or pay any additional monthly charge.
In his judgement, Murphy said: "It is an unfair trade practice to require consumers to find their way through to the truth past advertising stratagems which have the effect of misleading or being likely to mislead them."
Australian Competition and Consumer Commission chairman Rod Sims said in a statement: "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."
TPG general manager marketing & sales Craig Levy told AdNews TPG was
"disappointed and surprised" by the decision. "TPG had been confident
that its plans were properly displayed so as to meet advertising
regulatory requirements and most importantly so that consumers would see
the differentiating plan features and price components," he said.
The court also found TPG's earlier advertisements were misleading as they failed to disclose extra upfront charges and did not prominently specify the minimum charge.
The case forms part of the ACCC's ongoing enforcement and compliance campaign to improve telecommunications advertising.
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