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Optus fined $5m for misleading advertising

Optus has received a fine of more than $5m for misleading advertising, losing a case made against it by the Australian Competition and Consumer Commission last year.

The verdict made by a federal court saw the telco fined for $5.26m for misleading consumers about the download allowance they could get under an Optus price plan.

According to claims made in the campaign, for a monthly payment, a consumer would receive a headline data allowance of broadband which was then split into peak (midday to midnight) and off-peak (midnight to midday) data allowances.

However, the ACCC alleged that Optus had not sufficiently disclosed that the speed of the service would be limited to 64kbps at all times once a consumer exceeded their peak data allowance. As a result, any unused off-peak data would no longer be available at broadband speed.

“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.

http://youtu.be/HLPH-kZLaqc

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