$275,000 penalties against mobile premium service providers

17 September 2012:  The Full Federal Court has dismissed an appeal by Global One Mobile Entertainment Ltd and 6G Pty Ltd, two mobile premium service providers, against an earlier decision that certain advertisements were misleading or likely to mislead or deceive.  Both Global One and 6G represented that consumers could purchase and use ring tones, games and quizzes at a one-off cost when the consumer was actually requesting access to a continuing premium rate mobile subscription.

The ads were broadcast on free to air and Pay-TV, including during programs that would have attracted younger viewers.  Proceedings were instituted by the ACCC in October 2010. In June 2011 Justice Bennett of the Federal court found that the advertisements were misleading or deceptive.  The Full Court’s judgment upholds that decision and the penalty of $375 000.

You can read more about the case from the ACCC at http://www.accc.gov.au/content/index.phtml/itemId/1079378/fromItemId/2332

Contact Matthew Nicholls (ph: +61 3 8376 7131) to discuss your requirements.