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Optus targeted by ACCC for latest broadband ads

New case signals a return to court for telco giant over alleged Trade Practices Act 1974 breaches

Telco giant, Optus, is under fire from the Australian Competition and Consumer Commission (ACCC) for its latest series of advertisements targeting high-speed broadband customers.

According to a statement released by the regulatory body, the ACCC is bringing a case against Optus in the Federal Court, Sydney, for allegedly breaching the Trade Practices Act 1974.

It alleges the telco did not clearly tell customers in its ads that once they exceeded their data allowance the speed would be cut down, or ‘shaped’, to 64Kbps.

While the “Supersonic Broadband” ads don’t claimed to achieve a certain speed, the line “There’s no limit to what you can achieve” is included. Another claim made is that the speeds are up to 4x faster.

This isn’t the first time Optus has been in hot water over its advertisement methods. In June it went to court with the ACCC over its use of the term ‘unlimited’.

In mid-2009, its subsidiary, Prepaid Services, was taken to court over allegedly misleading and deceptive conduct and the Australian Communications and Media Authority fined Optus $110,000 for sending electronic spam.

The ACCC is seeking court orders, interlocutary injunctions, civil penalties, corrective advertising and costs for the case. The matter has been filed in the court’s Fast Track list and a directions hearing is set for September 16 with Justice Nye Perram.

ARN contacted an Optus spokesperson for comment, but did not receive one by time of publication.

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

More about: ACCC, ARN, Australian Competition and Consumer Commission, Optus
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