Misleading broadband advertising targeted by ACCC

It has been reported that the Australian Consumer and Competition Commission is targeting Australian telcos who are found to be running misleading ads relating to their broadband products.

It has been reported that the Australian Consumer and Competition Commission is targeting telecommunications providers in Australia with regards to running misleading ads about their broadband products. The ACCC is planning to clamp down on misleading ads through the use of new powers that it has recently gained.

Already one telco, Dodo Australia, has been hit with a fine by the ACCC for misleading advertising according to reports, and the commission has made it clear that further action will be taken against other telcos and broadband providers if they are found to be engaging in the same sort of advertising. Dodo was fined over twenty six thousand dollars as a result of four infringements that were picked up by the ACCC.

Acting ACCC chairman Michael Shaper said: “The telco industry is one we have had some concerns about. We have felt for quite some time that some ISPs have been a little bit cheeky or pushed the boundaries that little bit too far.” He added: “What we want to see from the industry is people getting accurate figures on the upfront cost of a plan. They need to know what they are paying and what they are paying for.”

With the broadband industry becoming increasingly competitive there are concerns that misleading advertising may become more common, as providers do their best to try and get consumers to sign up to their services rather than going to a rival provider.

Do you think that the ACCC’s action will prove effective in reducing misleading advertising? Let us know with your comments

Source – Business Spectator