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Information Technology News Fairfax in ACCC undertaking not to say “free” when hidden charges apply
Information Technology News Fairfax in ACCC undertaking not to say “free” when hidden charges apply | Fairfax in ACCC undertaking not to say “free” when hidden charges apply |
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| by Alex Zaharov-Reutt | |
| Monday, 28 July 2008 | |
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Page 2 of 2 The ACCC reports that it was “also concerned about the banner advertisement claims that the Domain mobile alert service was free in circumstances where users of the service would be charged 55 cents for each SMS alert.” ACCC Chairman, Graeme Samuel said that: "The use of the word 'free' in advertising and promotional material is a powerful marketing tool for attracting consumers. "As such, consumers should be entitled to presume that when a service is advertised as 'free', they will not incur an unexpected fee or charge from the business itself or from a third party. This is a reminder to businesses that the ACCC will not hesitate to take action against traders who make this kind of misleading claim,” continued Samuel. So, Fairfax Digital Australia and New Zealand Pty Ltd has now acknowledged these concerns and has offered court-enforceable undertakings to the ACCC that it will: - not publish any advertisement or promotional information on websites representing that Domain mobile phone services are free, in circumstances where consumers may incur charges or fees when using those services - cause a corrective notice to be published on the Domain homepage, and - update its trade practices law compliance program to ensure it will continue to meet its obligations under the Trade Practices Act 1974.
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