Court finds TPG broadband offer misleading
The Federal Court has ruled that TPG’s offer of “unlimited” broadband downloads $29.99 was misleading and deceptive conduct.
Justice Bernard Murphy ruled that the company failed to reveal that consumers had to bundle the ADSL2+ service with the company’s home phone rental service, which was priced at an additional $30.
Justice Murphy also found that the company had mislead customers when the company offered free set ups, but later charged $129.95 for the installation of the broadband service.
"The ordinary or reasonable consumer taking in only the dominant message would have the impression the entire cost of the service is $29.99 per month, with no other charges and no obligation to acquire another service," Justice Murphy said in his ruling.
TPG argued that the company was pitching its service to experienced consumers who would have a greater understanding of the costs involved.
"I do not accept this. The class includes first time as well as more experienced users. There is a tendency in some consumers to purchase the biggest, the best, or the highest quality product or service, seemingly regardless of whether that service is appropriate to their needs,” Justice Murphy ruled.