Court action for Optus over 'unlimited' plans

ACCC starts proceedings against Optus, alleging the telco’s use of the word 'unlimited' is misleading

The Australian Competition and Consumer Commission (ACCC) has begun legal proceedings against Singtel Optus Pty Ltd in the Federal Court in Melbourne for allegedly contravening the Trade Practices Act 1974 in relation to the company’s use of the word “unlimited” in its advertising.

The ACCC alleges that the term “unlimited” — which has featured in recent Optus’ print, television and radio advertising campaigns for its $70 prepaid Turbo Max plan — is misleading because the advertised plan is subject to some limitations and restrictions. As such, the commission alleges that the advertising was misleading or deceptive and contravened section 52 of the Act.

The ACCC has also called into question recent television and print advertisements which advertise "unlimited" broadband and "unlimited" calls on Optus broadband and home telephone plans alleging these plans are also misleading due to the restrictions and limitations imposed.

The proceedings have been filed in the Federal Court, and it is listed for a ‘Scheduling Conference’ in Melbourne later this month.

Last year the ACMA fined the telco $110, 000 for failing to adhere to Australian Spam Act legislation relating to mobile messaging.

For more information on the fine print for some Australian ISPs' 'unlimited' broadband deals read our exclusive report.

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Tags Australian Competition and Consumer Commission (ACCC)Singtel OptusacccoptusAustralian Communications and Media Authority (ACMA)

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