Crazy John's falls foul of the ACCC

Stuart Corner
Thursday, 17 January 2008 09:19

IT Industry - Strategy

The Australian Competition and Consumer Commission (ACCC) has instituted proceedings in the Federal Court against Mobileworld Operating Pty Ltd, which trades as Crazy John's, for allegedly making false claims that handsets on its mobile plans were "free" or "$0". The ACCC alleges that customers signing up on these plans ended up paying money for the handsets because call charges were higher than comparable plans that did not include a handset.

Such conduct would be in breach of sections 52 and 53 of the Trade Practices Act and the ACCC is seeking a range of remedies including declarations regarding the alleged contravening conduct and corrective advertising.

The case will be heard on the  Fast Track List in the Victorian registry of the Federal Court, which is intended to streamline court procedures and the time and cost of litigation.