The national competition regulator today dragged national broadband provider TPG into the Federal Court, claiming its $29.95 ‘Unlimited’ ADSL2+ plan actually cost a great deal more.
The company’s current advertisements on its home page state the plan — which allows unlimited data downloads — costs $29.99 per month. The company also offers a range of other plans, with a 10GB plan available for just $9.99 and subsequent 100GB and 500GB plans as well.
However, the Australian Competition and Consumer Commission today said TPG needed to go into more detail about the plan’s actual costs.
“The ACCC alleges that TPG’s advertisements for its $29.99 unlimited ADSL2+ broadband plan are false and misleading because the advertisements represent to consumers that they can buy unlimited ADSL2+ broadband services for $29.99 per month,” the regulator said in a statement. “In fact these services are only available when purchased together with home phone line rental from TPG at an additional cost of $30 per month, meaning that the minimum monthly charge payable is $59.99 not $29.99.”
In addition, the regulator stated, TPG’s advertisements did not adequately disclose two other up-front charges — a $129.95 broadband setup fee and a $20 home phone deposit. The regulator is seeking a declaration that the ISP contravened the Trade Practices Act, and is seeking pecuniary penalties, corrective advertising and costs.
TPG’s web site does currently display the details that the ACCC has complained about, although it is not immediately clear if those details were added before or after the regulator’s complaint. It is also unclear whether the details were visible on the ISP’s advertisements in online and print media, and on the side of buses in some areas, for example.
TPG has been contacted by email and invited to make a response to the allegations.
The news comes as there has been a spate of legal action in the telecommunications sector relating to what some have claimed are misleading advertisements.
The ACCC also took Optus to court in June for playing fast and loose with the term “unlimited” on broadband plans which do have usage limits — and recently won. And the SingTel subsidiary this month, in turn, sued Vodafone in an attempt to get the telco to modify its advertisements referring to “Infinite” mobile plans.
Image credit: Jason Morrison, royalty free
I know the radio ads have always said “when you bundle with a TPG home phone for $30 a month” (or something to that effect) but I don’t know about the print/internet ads.
I was interested in this account and actually NOTED that they DID say that you have to bundle it. $29.99 line rental I believe.
Not even sure why it’s going to court.
Guessing it has something to do with the perception of the word “unlimited”, when really, most accounts by ALL telcos with this term are actually SHAPED, after your monthly limit is reached. Therein lays the ‘deception” of the term, unlimited.
Perhaps the ISPs definition is unlimited for an “average user”?
You can see the ad at: http://www.tpg.com.au/
2010 has definitely become the year of ISP’s acting badly.
TPG has done everything correctly:
Total min charges has been disclosed which includes the Home phone deposit & setup fee. $30 Home Phone line rental is included in every advert along with Unlimited ADSl2+
Telstra must have tipped their mates at the ACCC off to go after TPG since TPG is hurting Telstra.
I think TPGs sales and aggressive pricing is really hurting all telcos, not just Telstra although Telstra has the most to lose. I wonder how long this discounting can run for.
TPG has done nothing ALL the other ISP’s have done at various times, why didnt the ACCC take Telstra to court when it was running “unlimited” in its advertising? There has been more complaints lodged with the ACCC about Telstra then all the other isp’s combined yet still no action is or has been taken.
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