The Australian Competition and Consumer Commission (ACCC) has flexed its muscles after an advertising bungle which saw Foxtel offer more freebies than it could handle.
A nationwide advertising campaign from the pay-TV giant offered a free television to customers who subscribed to a 12 month plan between 12 February 2012 and 5 April 2012, but the majority of new subscribers did not receive the television.
While the company did advertise the offer was limited to 1,500 televisions, 8,400 people signed up to the deal, and the ACCC has suggested Foxtel may not have taken sufficient steps to ensure it delivered on its promise to consumers.
“It is important for businesses to have a reasonable basis for any promises made to consumers otherwise they risk breaching Australian Consumer Law,” ACCC chairman Rod Sims said.
“Businesses must review claims made in advertisements to ensure they remain accurate at all times.”
Foxtel has provided the ACCC with a court enforceable undertaking to give a subscription credit to Foxtel customers who subscribed to the offer, were not sent a TV and were still customers as of May 2013.
Foxtel has said it will appoint a compliance officer to review areas of the business where it might breach competition and consumer laws.
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