Kayo fined by ACCC for subscription promotion

Foxtel’s sports streaming service Kayo has paid a penalty for what the Australian Competition and Consumer Commission (ACCC) alleges was a misleading promotion.

Between March and April this year, Kayo pushed its basic subscription package to Telstra customers, saying they could have two months access’ for just $5.

The allegedly misleading promotion [Click to enlarge]

Kayo’s payment of the $12,600 penalty is not an admission of guilt, or confirmation that Australian Consumer Law was breached. Rather, the ACCC can issue an infringement notice where it has reasonable grounds to believe a person or business has contravened certain consumer protection laws.

“We were concerned that Kayo’s website did not adequately disclose the offer was only available to Telstra customers who had not previously used Kayo,” ACCC deputy chair Delia Rickard said.

“The eligibility requirement appeared in small print on Kayo’s website and was significantly less prominent than the headline offer.

“Under the Australian Consumer Law, businesses must ensure that qualifications or restrictions on any deal or promotion are made clear to consumers. This means they must be prominent and not hidden in the fine print.”

A Kayo spokesperson said: “We accept the ACCC’s decision to issue an infringement notice. While we believed the relevant eligibility conditions were clear in this case, we have noted the ACCC’s findings. We will always work to ensure we fully comply with Australian Consumer Law.”


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