Optus found guilty of misleading advertising

Optus forced to correct broadband advertising and faces fines

Optus has been slapped with an injunction and faces hefty fines after being found of deceptive advertising by the Federal Court yesterday.

In a case brought by the Australian Competition and Consumer Commission (ACCC), Optus was found guilty of misleading advertising in regards to its 'Think Bigger' and 'Supersonic' broadband Internet plans.

The 'Think Bigger' and 'Supersonic' broadband plans included on- and off-peak data allowances but Justice Perram found that Optus had misled its customers by not clarifying that speeds would be shaped to 64Kbps if their peak data allowance had been exceeded.

In his ruling, Justice Perram stated that "the contravention here is a serious one and the public should be protected from any further repetition of it," and prohibited Optus from launching similar advertising campaigns in the next three years. Optus was also ordered to pay all of the ACCC's court costs to date, with a ruling on further penalties and corrective advertising to be handed down on Friday.

Optus has not been forced to remove any of their advertisements but any future campaigns must comply with the injunction handed down by Justice Perram.

Optus maintained that its advertisements for the 'Think Bigger' and 'Supersonic' broadband plans were not misleading as customers were properly informed by call centres or the Web site when they signed up to a plan.

ACCC chairperson Graeme Samuels said in a statement that Optus had broken the law and could not rely on call centres to clarify misleading advertising. "Consumers and the ACCC are, frankly, tired of telcos using complex, confusing and deceptive advertising to fool consumers," he said.

Samuels also issued a warning to other telcos in regards to misleading advertising. "This should serve as yet another reminder, that if these companies don't clean up their act, the ACCC will be here to take you to task, and you can expect to be hit with the full force of the law."

In a response to the verdict, a spokesperson for Optus said, "It is never our intention to mislead our customers and we have corrected the advertising in question to make it clearer. We will continue to work with our customers to ensure they are completely satisfied with Optus."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags broadbandoptusacccInternet pricingInternet speeds

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Kevin Cheng

Good Gear Guide
Show Comments

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?