More warnings over 'free' and 'unlimited' phone and Internet

More warnings over 'free' and 'unlimited' phone and Internet

Optus, Telstra and Vodafone have been singled out by consumer action group over phone and Internet advertising

The Australian Communications Consumer Action Network (ACCAN) has added its voice to the issue of misleading advertising over mobile phone and Internet bills.

ACCAN has referred six other examples of misleading or unfair advertising to the ACCC. Its complaint includes advertising from the three major telcos - Optus, Telstra and Vodafone/Hutchison - on the use of terms such as ‘free' and ‘unlimited'.

The group says that misleading and unfair advertising is rife in the industry and labels most of the marketing as "wall-to-wall deception" that is so confusing most consumers can't compare different plans because they can't make sense of them. ACCAN CEO Allan Asher told PC Authority "If a plan or offer is not unlimited, then the word shouldn't be used at all. It's time for plain English advertising to make a comeback."

Asher believes that consumers need better safeguards. "It's extremely difficult at the moment for consumers to get the right information on plans. The best hope they have is to do their research, read the fine print and make sure they understand what is included in their plans and what is not."

ACCAN wants better industry standards and Asher said that consumers should be offered full compensation for loss or damage as a consequence of unlawful behaviour and the option of a penalty free release from a contract entered into as a consequence of deception.

Many readers have written to us complaining about internet and phone advertising that promise bonuses, credits and special deals, but have many conditions attached.

As we have reported, a number of Optus advertisements promoting ‘unlimited' plans have come to the attention of the Australian Competition and Consumer Commission (ACCC), which has instituted legal proceedings against the company. The regulator alleges that certain ads for broadband and home phone plans contain limitations and restrictions, but are misleading because they are advertised as ‘unlimited'. 

What improvements would you like to see? Add your opinion below.

See more about:  investigator  |  accc  |  phones
 
 

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Comments: 7
zothen
15 June 2010
For starters, they could stop telling prospective customers that the quota is for bandwidth, this is very missleading. I was tricked in to switching to them, and had to pay a $300 cancellation fee, when I discovered that the bandwidth included uploads, effectively giving me 4 days usage a month before being reduce to less than dial up speed!


Comment made about the PC Authority article:
More warnings over 'free' and 'unlimited' phone and Internet?
Optus, Telstra and Vodafone have been singled out by consumer action group over phone and Internet advertising


What do you think? Join the discussion.
petergaskin
15 June 2010
if a plan includes throttling, then it should be clearly explained in the ad ie that might mean 12gb at full speed, then any further internet for the month will be throttled back to dialup speed. then it shoudl be a further condition that the isp undertakes to inform the consumer just what that means.
PublicBarScrote
16 June 2010
well like i said australian companies have always given us the crappy deals, everything is double price for half the product. the only one to blame is the governtment because they allow companies to become monopolies and kill competition , hence real deals for the consumer.
Slatts
16 June 2010
PublicBarScrote wrote:
well like i said australian companies have always given us the crappy deals, everything is double price for half the product. the only one to blame is the governtment because they allow companies to become monopolies and kill competition , hence real deals for the consumer.

Which companies are these then PBS?
PublicBarScrote
17 June 2010
well were do i start???
First the utilities in America u pay $60 a month for summer and say $90 for winter for electricity and gas .In Australia its out of control
For internet In America u pay $60 for cable/unlimited here in ausstralia $80+/25g.
Registration for cars for Older cars $50 in america new cars are more depends on yr. here in Australia $500+ no matter what u have.
should i go on................

Slatts
17 June 2010
I'm not seeing monopolies there yet..
larceny perhaps but no monopolies.

PublicBarScrote
19 June 2010
lets see telstra, who own all of the network. The Post
office
Banks , everyone know in australia they rip people off.
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