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Updated: iiNet fined $102,000 for Naked ad

Updated: iiNet fined $102,000 for Naked ad

According to the ACCC, the Naked DSL Service advertisement failed to prominently state the total minimum price

iiNet has paid $102,000 infringement notice to the Australian Competition and Consumer Commission (ACCC) relating to an advertisement for its Naked DSL Service.

According to the ACCC, it had reasonable grounds to believe the ad failed to prominently state the total minimum price payable for the service, allegedly breaching Australian Consumer Law.

The advertisement was displayed on the rear of a bus in Sydney in from February to March, stating the monthly price of iiNet’s Naked DSL Service of $59.95. It also displayed the total minimum price of the service, but the ACCC considered it was not in a prominent way.

In this instance the total minimum price comprised $59.95 for each month for 24 months plus a $79.95 connection fee totaling $1518.75.

Under the Australian Consumer Law, an advertisement that promotes the monthly price of a service must also prominently state the quantifiable total minimum price for that service.

“Businesses need to take into account the context in which their advertisements appear. If the total minimum price is not prominent or cannot be easily seen, businesses run the risk of being in breach of the Australian Consumer Law,” ACCC Chairman, Rod Sims, said.

iiNet Chief Regulatory Officer, Steve Dalby, said it was committed to meeting compliance obligations under the Australian Consumer Law and when advised by the regulator that its interpretation of 'prominence' was not adequate, it immediately took steps to rectify the advertisement in question.

"Although there are no specific guidelines in the law outlining what is adequate prominence, we have a comprehensive compliance program in place to help us meet this continuing challenge," Dalby said.


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