TPG guilty of “false and misleading” ads
- 09 November, 2011 09:16
An advertisement campaign by national ISP, TPG, has been found to be “false and misleading” by the Federal Court in Melbourne.
The advertisement pertained to the company's $29.95 Unlimited ADSL2+ plan and involved TV, newspapers, radio and online media.
The Court found the campaign to be misleading because it gave the impression the service would cost only $29.95 per month without clearly stating the price is only applicable when bundled with another TPG service.
TPG's Unlimited plan must be combined with a $30 per month home phone service so it would actually cost customers $59.95 per month.
"It is an unfair trade practice to require consumers to find their way through to the truth past advertising stratagems which have the effect of misleading or being likely to mislead them,” Presiding judge, Justice Murphy, said in a statement.
Earlier advertisements from the telco were also found to be misleading because upfront set-up costs of $129.95 were not clearly disclosed.
A directions hearing has been scheduled for November 15. Penalty has yet to be determined.