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Optus advertising falls foul of Trade Practices Act, again

IT Policy - Regulation

The Australian Competition and Consumer Commission has instituted legal proceedings against Optus over its 'Think Bigger' and 'Supersonic' promotional campaigns.


This latest action follows one initiated in June alleging that Optus contravened the Trade Practices Act in television, radio and print advertisements that promoted 'unlimited' calls on its $70 prepaid Turbo Max mobile plan.

In this latest action the ACCC alleges that that Optus did not sufficiently or clearly disclose, and in some cases did not disclose at all, the fact that a customer pays a specified monthly sum and receives a specified data allowance for that month divided into peak and off-peak periods, and that once the customer exceeds the peak data allowance, the Internet connection is limited to a speed of 64kbps.

The ACCC is seeking court orders, including declarations that Optus breached the Act, injunctions, including interlocutory injunctions, civil penalties, corrective advertising and costs. The matter has been filed in the Federal Court's Fast Track list, and is listed for a directions hearing on the interlocutory relief at 9.30am on 16 September 2010 before Justice Perram in the Federal Court in Sydney.

The ACCC has not specified what format the offending ads appeared in. Advertising industry web site, Mumbrella  claims it to be the Optus 'supersonic reindeer' TV ad. However that advert makes no real claim, except about the new Optus cable broadband being "four times faster" and at end where the narrator says, "Optus supersonic broadband: now there is no limit to what you could achieve."

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