FOXTEL Management Pty Ltd has provided the Australian Competition and Consumer Commission (ACCC) with a court enforceable undertaking following allegations that FOXTEL breached the Australian Consumer Law with a free television offer.
The undertaking stems from representations made by FOXTEL that customers who subscribed to a 12 month plan between 12 February 2012 and 5 April 2012 would receive a free 22 inch neoniQ television within ten days of installation of their FOXTEL service. A nationwide advertising campaign including television advertisements and direct marketing was used to promote the offer.
A significant number of customers who signed up to the offer did not receive the televisions within ten days of installation. The ACCC believes that FOXTEL did not take sufficient steps to ensure that it could deliver on the offer. FOXTEL advertised that the offer was limited to 1,500 free televisions but signed up nearly 8,400 subscribers to the promotion.
ACCC Chairman Rod Sims said:
It is important for businesses to have a reasonable basis for any promises made to consumers otherwise they risk breaching the Australian Consumer Law. Businesses must review claims made in advertisements to ensure they remain accurate at all times.
FOXTEL has undertaken to give a subscription credit, to current FOXTEL customers who:
- subscribed to the free television offer between 12 February 2012 and 5 April 2012;
- were not sent a free television within ten business days after installation; and
- still had a FOXTEL subscription as at 1 May 2013.
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