The Federal Court has slapped Internet Service Provider TPG with a $2 million fine for misleading broadband advertising and failing to prominently display the minimum charge in relation to a national ad campaign. 

 

“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,” Australian Competition and Consumer Commission 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.”

 

The Federal Court ruled that TGP’s $29.99 Unlimited ADSL was false and misleading because the service was only available to those who purchased a line rental for $30 per month. The Federal Court also found the company had inadequately specified the minoimum charge and were misleading for not disclosing further up front charges.

 

“The conduct was seriously misleading and affected a diverse class of users and potential users of broadband services. that there was a risk that its conduct might constitute misleading conduct” and that TPG “should have adopted a more cautious approach,” Federal Court Justice Murphy noted in his final judgment.

 

Justice Murphy considered that a sizeable penalty was “necessary to make it clear to TPG and to the market that the cost of risking a contravention cannot be regarded as merely an acceptable cost of business.”