Wednesday, September 08, 2010

Australia - Regulator has fast track against Optus for misleading advertising of its broadband offer

[business spectator] The competition regulator has launched legal action against Optus, accusing the telecommunications company of engaging in misleading or deceptive advertising for its broadband plans.

The Australian Competition and Consumer Commission (ACCC) has accused the Singapore Telecommunications-owned telco of breaching the Trade Practices Act, raising concerns in particular over its 'Think Bigger' and 'Supersonic' promotional campaigns.

The ACCC has taken issue with Optus' disclosure of certain qualifications attached to its broadband plans, which allows customers to pay a specific monthly sum in return for a specified data allowance divided into peak and off-peak.

" ... once the customer exceeds the peak data allowance, the internet connection is limited to a speed of 64kbps," the ACCC said in a statement.

"The ACCC alleges that Optus did not sufficiently or clearly disclose, and in some cases did not disclose at all, these qualifications."

The ACCC is seeking court orders, including declarations that Optus breached the Act, injunctions, including interlocutory injections, civil penalties, corrective advertising and costs.

Shares in Singapore Telecommunications closed at $2.50 each.

ACCC launches court action against Optus

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