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Aldi Mobile's unlimited pack not unlimited at all

  • 06 March 2014
  • Written by 
  • Published in Mobility

Medion Australia, operating as Aldi Mobile, has admitted to misrepresenting its ALDImobile Unlimited Pack, which had significant usage restrictions.

Medion supplies pre-paid mobile products and services under the brand name ALDImobile on the ALDImobile website and in ALDI Stores, and is not a related entity of ALDI Stores.

The company took charge of Aldi's movile services Aldi Mobile after ISPOne entered voluntary administration in August last year, and was today found to be misrepresenting its 30-day "Unlimited Pack" available through the Aldi Mobile website from watchdog the ACCC.

The ACCC found that between 14 September 2013 and 15 November 2013 Medion claimed its "unlimited" pack provided 30 days worth of unlimited voice calls, voicemail, SMS and MMS.

 

However, in its Acceptable Use Policy, Medion stated that daily, three-day and 30-day limits applied to voice calls, SMS and MMS.

“The ACCC is concerned that some Telco businesses are making sweeping offers of unlimited services while concealing the true extent of the service in the fine print,” ACCC Deputy Chair Delia Rickard said.

"The ACCC is particularly concerned about the use of 'unlimited', or similar terms, in telecommunications industry advertising when significant restrictions apply. Consumer protection in the telecommunications sector remains a priority for the ACCC in 2014. This undertaking serves as a notice that our scrutiny of industry advertising and sales practices continues.

“Consumer protection in the telecommunications sector remains a priority for the ACCC in 2014. This undertaking serves as a notice that our scrutiny of industry advertising and sales practices continues.”

Medion has admitted that it is likely to have engaged in misleading conduct, and made false or misleading representations, in contravention of sections 18 and 29(1)(g) of the Australian Consumer Law.

In response to the ACCC’s concerns, Medion has changed the name of the ‘Unlimited Pack’ to ‘$35 Plan’ , removed the description of unlimited from the ALDImobile website and in-store advertising and provided a court enforceable undertaking to the ACCC.

The undertaking requires Medion to:

  • refrain from engaging in the same or similar conduct for three years;
  • publish a corrective notice on the ALDImobile website for 30 days; and
  • establish and implement a competition and consumer law compliance program for two years.

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