TPG penalised $2 million for misleading broadband advertising

20 June 2012: The Federal Court has ordered TPG Internet Pty Ltd to pay $2 million in civil pecuniary penalties for false and misleading advertising and failing to prominently specify the minimum charge in relation to a national advertising campaign following action by the Australian Competition and Consumer Commission.

“This decision should send a strong warning to telecommunications and internet providers that they cannot continue to take risks in their advertising or they could end up in court and be exposed to substantial penalties,” ACCC Chairman Rod Sims said.

“The ACCC is committed to taking a hard line to secure a culture of compliance by telecommunications providers and improve marketing in the telecommunications industry.  The ACCC will continue to take court action in order to achieve this.”

These orders follow the Federal Court finding that TPG’s $29.99 Unlimited ADSL2+ campaign was false and misleading because the ADSL2+ plan was only available when purchased with home line rental from TPG at an additional cost of $30 per month.  The Federal Court also found that the earlier advertisements did not prominently specify the minimum charge and were misleading for not disclosing additional up front charges.

Full story here.

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