The Australian Competition and Consumer Commission (ACCC) has taken Singtel Optus to court for its allegedly misleading use of the term “unlimited” in advertisements.
According to the ACCC, Optus told customers in advertisements they would get unlimited calls on its $70 pre-paid Turbo Max plans.
But when customers checked the fine print, it also came with a number of limitations and restrictions.
The ACCC has accused Optus of breaching section 52 of the Trade Practices Act 1974, which states “A corporation shall not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.”
In a statement Optus disagreed with the ACCC's interpretation of the word 'unlimited' in its advertising but did not deny the offers came with limitations.
"We beleive our advertising is clear, it is not misleading, it complies with all laws and our customers understand it," it said. "The information is prominent in our advertising."
The case has been fast tracked and will first reach court under Justice John Middleton in the Melbourne Federal Court on June 25.
This isn’t the first time Optus has been hit by regulatory bodies. In mid-2009, Optus subsidiary, Prepaid Services, was taken to court over allegedly misleading behaviour.
Earlier that year, the Australian Communications and Media Authority (ACMA) took Optus to court and the telco was fined $110,000 for breaching the Spam Act.
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