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Singapore owned Optus has been hit with a massive fine of $5.26 million for misleading consumers about the speed of their broadband network.
Singapore owned Optus has been hit with a massive fine of $5.26 million for misleading consumers about the speed of their broadband network.
The Australian Competition and Consumer Commission took Telsta’s arch enemy to court when Optus tried to take on Telstra’s BigPond network in a broadband speed fight.
The ACCC deemed their advertising to be misleading and the Federal Court has agread with them.
Formally known as Singtel Optus, The ACCC took action against the Singapore owned Company in the Federal Court over an advertising campaign for broadband internet plans launched on Anzac Day in 2011.
Today Justice Nye Perram sitting in the Federal Court ruled that there was an “essential vice” in the advertisements, because they misled people about the download allowance they could get under the plans.
“They suggested that a consumer would obtain a broadband usage allowance of 120GB or 150GB [depending on the particular plan] consisting of two usages allowances – one peak, one off-peak,” Justice Nye Perram said in his judgment.
“In fact, however, this was only true if the consumer was careful to ensure that all of his or her off-peak allowance was exhausted before the peak allowance was fully utilised.”
Last year Optus was hit with a $180,000 fine by the ACCC for misleading mobile plans in which the so-called maximum was in fact a minimum price.
“This decision sends the clear message that misleading consumers is not a legitimate business strategy. Optus is not a small business, but a large company that engaged in misleading and tricky conduct,” said ACCC chairman Graeme Samuel.
“The entire telecommunications industry needs to sit up and take notice. This conduct is not acceptable, and the ACCC will seek the harshest penalties the law allows.”
An Optus spokesperson told Mumbrella: “We are disappointed by today’s outcome and are considering the judgement. Optus always strives to provide our customers with the best value products and services. It was never our intention to mislead our customers.”
The ‘Think Bigger’ and ‘Supersonic’ broadband internet plans campaigns were created by M&C Saatchi.
