ACCC takes TPG to court

Competition regulator to argue TPG's $29.99 unlimited ADSL2+ broadband plan are "false and misleading"

The Australian Competition and Consumer Commission (ACCC) has instituted legal proceedings against internet service provider (ISP) TPG for alleged contraventions of the Trade Practices Act.

In the proceeding, to be carried out in the Federal Court, Melbourne, the ACCC will allege that TPG's advertisements for its $29.99 unlimited ADSL2+ broadband plan were false and misleading due to the advertisements representing to consumers that they can buy unlimited ADSL2+ broadband services for $29.99 per month.

The ACCC alleges that these services are only available when purchased together with home phone line rental from TPG at an additional cost of $30 per month, with the result that the minimum monthly charge payable is actually $59.99.

The ACCC further alleges that TPG's advertisements do not adequately disclose a $129.95 broadband setup fee and a $20 home telephone deposit which customers must also pay in order to obtain the unlimited ADSL2+ service.

TPG joins Vodafone and Optus who also recently fronted court to address allegations of misleading customers.

Optus and Vodafone are currently facing off, with the former arguing print and television ads run by Vodafone since mid-November failed to properly notify customers of what was included in the plans.

Optus recently faced the ACCC in court, resulting in the telco being ordered to issue corrective advertising relating to its ‘Think Bigger’ and ‘Supersonic’ plans for hybrid-fibre coaxial (HFC) plans, and pay civil penalties for misleading advertising of the plans.

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