The Australian Competition and Consumer Commission (ACCC) has instituted proceedings against Optus for alleged breaches of the Trade Practices Act in its advertising.
The ACCC alleges the breaches occurred in two recent advertising campaigns from the telco - "think bigger" and "supersonic".
The consumer watchdog claims that Optus engaged in "misleading or deceptive conduct and made false representations in relation to the advertising of certain broadband plans as part of [its] promotional campaigns."
According to the ACCC, Optus did not clearly or sufficiently disclose all qualifications relating to the broadband promotions, for which a customer pays a specified monthly sum and receives a specified data allowance for that month divided into peak and off-peak periods.
However, once the customer exceeds the peak data allowance, the internet connection is limited to a speed of 64kbps - a similar speed to a dial-up modem.
It's not the first time the telco has come under fire from the consumer watchdog. In June, ACCC instituted proceedings against Optus which alleged the use of the word "unlimited" in its advertising was misleading.
A spokesperson for Optus said: "Optus acknowledges the claims made by the ACCC and looks forward to working with the ACCC to resolve any concerns they may have.
"Optus goes to great lengths to offer the best products and services to our customers and to explain the value of those offers clearly."
The matter is scheduled to be heard on 16 September.
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