The Australian Competition and Consumer Commission is seeking to ban Optus from using the word “unlimited” in advertising after alleging the company has misled consumers.
The ACCC alleges that certain television, radio and print advertisements run recently by Optus which advertise “unlimited” calls on its $70 pre-paid Turbo Max plan are misleading because the offer is subject to a number of limitations and restrictions.
The ACCC also alleges that certain recent television and print advertisements which advertise “unlimited” broadband and “unlimited” calls on Optus broadband and home telephone plans are misleading because the offers are subject to a number of limitations and restrictions.
The Australian Communications Consumer Action Network, a communications industry watch-dog, believes that the ACCC should go further in their action against Optus. Not only should the ACCC seek an injunction against Optus using misleading phrases like ‘unlimited’, but ACCAN believes the ACCC should seek financial compensation for consumers who were misled by Optus’ deceptive advertising.
The wall-to-wall deception that seems to pass for marketing in the telecommunications sector is out of control,” ACCAN CEO Allan Asher said last week.
“The industry trades on a ‘confusopoly’ that banks on the fact no reasonable consumer can compare different mobile or internet plans because they simply can’t make sense of them.” he said.
Mr Asher believes the industry has had enough time to self-regulate and the time is right for the ACCC to bring stronger penalties to bear.
“They’ve been given more than enough chances, more than enough warnings, and now time is up for the telcos – the ACCC must take action to bring this industry into line.” he said.
