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Canberra Today 15°/18° | Thursday, March 28, 2024 | Digital Edition | Crossword & Sudoku

‘Misled’ clients can opt out of internet contracts

PHONE and ISP provider TPG has undertaken in the Federal Court to end the contracts, without penalty, of customers who believe they were misled by the company’s $29.99 Unlimited ADSL2+ campaign.

The action was brought by the Australian Competition and Consumer Commission in the Federal Court, whose chairman Rod Sims said customers seeking to exit the contract should contact TPG’s customer service department.

The Federal Court found that TPG’s campaign conveyed false or misleading representations because the ADSL2+ plan was only available when purchased with home-line rental from TPG, at an additional cost of $30 per month.

The court also found that some of the advertisements, published between September 25 and October 7, 2010, did not prominently specify the minimum charge and were misleading for not disclosing additional up-front charges.

The Federal Court ordered TPG to pay $2 million in civil pecuniary penalties, publish corrective notices, maintain a trade practices compliance program for three years and pay ACCC’s costs. The Federal Court also imposed injunctions restraining TPG from engaging in similar conduct in the future.

TPG has also undertaken to publish a corrective notice on its website and write to affected customers.

TPG has appealed the Federal Court decision, which is scheduled to be heard by the Full Federal Court in November.

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Ian Meikle, editor

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