Federal Court declares TPG advertisements misleading - Australian Competition and Consumer Commission v TPG Internet Pty Ltd (No 2) [2012]
Tuesday 19 June 2012 @ 2.50 p.m. | Corporate & Regulatory
The Federal Court in Melbourne on Friday handed down its decision in the case of Australian Competition and Consumer Commission v TPG Internet Pty Ltd (No 2) [2012] FCA 629.
Justice Murphy found that TPG Internet Pty Ltd (TPG) engaged in false and misleading conduct through its “Unlimited ADSL2+” advertising campaign, in contravention of section 52 of the Trade Practices Act 1974 (Cth). This followed on from legal action by the Australian Competition and Consumer Commission.
In September 2010, TPG Internet Pty Ltd launched an advertising campaign on television, radio, in newspapers and online, and later in magazines, coupon booklets and brochures, and on cinema screens, and indoor and outdoor billboards for its “Unlimited ADSL2+” broadband plan.
The advertising used by TPG prior to 7 October 2010 stated that customers could obtain an unlimited ADSL2+ broadband internet service for the cost of $29.99 per month. However, the Federal Court found that the advertisements failed to adequately disclose that this was only offered on condition that the customer also purchase home telephone line rental from TPG at an additional cost of $30 per month. The monthly cost of the bundled services was therefore $59.99 not $29.99.
The form of advertising before 7 October 2010 also failed to properly disclose that an additional up-front charge of $79.95 or $129.95 (depending on the contract term selected by the Customer) was payable for the services.
The outcome was the granting of an injunction that TPG be restrained from publishing any advertisement containing any of these misrepresentations. TPG must publish corrective advertising, and must pay, pursuant to section 76E(1) of the TPA, a pecuniary penalty of $600,000 in respect of the original advertisements, and $1,400,000 in respect of later amended advertisements.
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