iiNet pays infringement notice for misleading advertising

iiNet has paid an infringement notice of $102,000 to the Australian Competition and Consumer Commission (ACCC) in relation to an advertisement for its Naked DSL Service. The ACCC had reasonable grounds to believe the advertisement failed to prominently state the total minimum price payable for the service, according to a Media Release from the ACCC.

This is the first infringement notice to be paid by a publicly listed company for an alleged breach of the Australian Consumer Law.

The advertisement, which was displayed on the rear of a bus in metropolitan Sydney between at least 20 February 2013 and 11 March 2013, displayed the monthly price of iiNet’s Naked DSL Service of $59.95.The advertisement also displayed the total minimum price of the service. However the ACCC considered that the total minimum price was not displayed in a prominent way.

Under the Australian Consumer Law, an advertisement that promotes the monthly price of a service must also prominently state the quantifiable total minimum price for that service.

In this instance the total minimum price comprised $59.95 for each month for 24 months plus a $79.95 connection fee amounting to a total price of $1,518.75.

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