ACCC takes Optus to court over 'unlimited' claims in mobile advertising

Stuart Corner
Thursday, 03 June 2010 23:41

Opinion and Analysis

The ACCC has instituted legal proceedings against Optus over its use of the word 'unlimited' in relation to its prepaid mobile services. This comes as no surprise to iTWire.

The ACCC has instituted proceedings in the Federal Court in Melbourne against Optus alleging that Optus contravened the Trade Practices Act in television, radio and print advertisements that promoted 'unlimited' calls on its $70 prepaid Turbo Max plan.

I suggested back in March that Optus was sailing very close to the wind in the way it promoted the Turbo Max plan.

The ACCC says these advertisements were misleading because the offer is subject to a number of limitations and restrictions. The ACCC is seeking declarations that Optus contravened the Act. It is also seeking injunctions and costs.

The proceedings have been filed in the Federal Court's Fast Track List and there will be a scheduling conference before Justice Middleton in Melbourne on 25 June.

In my original comment piece, I quoted Optus describing the plans as 'virtually unlimited' and suggested this statement was as nonsensical as describing a woman as being '0 percent pregnant' and quite unjustified given the number of qualifications to 'unlimited'; which seems to be exactly the thing that has upset the ACCC.

Going back to that article, what surprises me is the comments that it engendered. I was accused of "getting facts wrong and [trying] to muddy waters that don't need muddying."

This objector went on to say: "You quote a statement 'To avoid misleading consumers, any qualifications of an offer of 'unlimited' calls or text must be prominently stated and not so significant that they negate the headline message.' If you take note of the Optus offer, everywhere I have seen this, it clearly states the 3000 mins or SMS limit under the Unlimited statement'¦If you are a heavy user, unlimited means no restrictions to your calling habits. 3000 mins is 1.45 hours of talking every day for 30 days."

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