TPG slapped with $2 million fine over broadband ads

Ads $29.99 Unlimited ADSL2+ plan were misleading, court finds

TPG will have to fork up $2 million after losing a case brought against it by the Australian Competition and Consumer Commission (ACCC) in the Federal Court. The court found that advertising for the ISP's $29.99 Unlimited ADSL2+ plan was misleading because the offer had to be bundled with phone line rental from TPG.

In a 15 June judgement the court ruled that TPG had breached section 52, section 53(e) and section 53(g) of the Trade Practices Act 1974.

In a statement issued yesterday lauding the judgement, ACCC chairperson Rod Sims said the outcome should send a strong warning to telcos and ISPs that "they cannot continue to take risks in their advertising or they could end up in court and be exposed to substantial penalties."

Justice Murphy ruled that TPG would have to place corrective advertising in The Australian, Daily Telegraph, Sydney Morning Herald, Age, Herald Sun and Adelaide Advertiser, as well as place a corrective note on its own home page.

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