ACCC takes Optus to court

Claiming their use of "unlimited" is misleading

The Australian Competition and Consumer Commission (ACCC) has launched legal action against Optus for an alleged violation of the Trade Practices Act 1974 through the telco's use of the word “unlimited.”

The ACCC’s claims are based on recent television, radio and print advertisements by Optus that advertise “unlimited” calls on its $70 pre-paid Turbo Max plan and "unlimited" broadband and "unlimited" calls on their broadband and home telephone plan.

The competition regulator is arguing that the advertisements are deceptive due to both limitations and restrictions that the plans are subjected to and are in breach of section 52 of the Act.

The ACCC is seeking declarations that Optus contravened the Act, injunctions and costs and will see them face court in Melbourne on 25 June.

As previously reported by Computerworld Australia, the ACCC has been an advocate for consumers in its recent backing for increased use of social media tools and supply chain technologies in a bid to improve the effectiveness of product recalls.

According to the competition regulator, there have been more than 10,000 products recalled in Australia in the last 23 years. The overall average return rate of recalled goods was 56.75 per cent, and varied between 36 per cent and 80 per cent.

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More about Australian Competition and Consumer CommissionAustralian Competition and Consumer CommissionOptus

6 Comments

Daniel

1

Get the bustard

Washington

2

We came from UK recently where we had actual unlimited broadband at home and when we approached an optus agent for a similar service we were sold "unlimited" broadband which turned up to be 30gigs.Can optus hold us to terms of contract ?

James

3

Perhaps the advertising people (and those paying the bills at Optus) need to be reminded what that "dictionary" thing is. In mine, "unlimited" actually means "has no limit" - yet the Optus ads were very clear that there were, in fact limits for a service marketed as "unlimited".

Go get 'em, ACCC!

Carl

4

Good Job ACCC, I too am against these telco giants using the term unlimited, people must realize Australia has no fast unlimited broadband, we are the last country on earth to ever have such privileged

CraigS

5

And not before time. I too work overseas, but am returning in 2 weeks, and have been looking for a comparable package to what I have overseas. My UNLIMITED is unlimited - no peak /off peak hours, no shaping, no excess charges - and all for A$22/month. There is clearly no competition in Australia and that is what the ACCC should also be looking at. Talk about collusion between the companies.

AJ

6

stupid consumers need to actually read what the are signing, people are adults and need to be more accountable these days!!!! not be let out of contracts as they are to stupid to read the paper they are signing.

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