Ouch: iiNet Whopper Fine For 'Naked' Ad

Written by Oonagh Reidy     20/06/2013 | 11:55 | Category: INDUSTRY

Telco forced to cough up $102,000 for Naked DSL ad

Ouch: iiNet Whopper Fine For 'Naked' Ad

iiNet pays a whopping $102,000 fine to the Australian Competition and Consumer Commission in relation to an ad for its Naked DSL, emblazoned on the back of Sydney buses. 

The consumer watchdog believe the ads for broadband failed to "prominently state" the total price for getting Naked over the 24 month contract, which includes a $79.95 connection fee, amounts to $1,518.75.

The offending ads displayed the monthly price of iiNet's Naked DSL $59.95, only, breaking consumer laws requiring ads to 'prominently state' the total minimum price for the service.

This is the first time a listed company paid for an infringement notice served by the watchdog. 

The ads rode on the back of Sydney buses between 20 February -11 March 2013.  

"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.

"This outcome is consistent with the continuing consumer protection work in the telecommunications sector, which is currently a priority for the ACCC."

The payment of an infringement notice is not an admission of a contravention of the Australian Consumer Law.

The ACCC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.

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