Austar Entertainment Pty Ltd - s.87B undertaking

On the above date, the ACCC accepted an undertaking from AUSTAR Entertainment Pty Ltd regarding the representations it had made to customers signing up to its subscription television services.

AUSTAR often offers extra packages of channels (such as movies or sport) for free or at a discounted rate for a short period at the beginning of a minimum-term contract on top of its basic set of channels or 'Starter Pack'.
Its advertising and sales contracts represented the total minimum cost as that calculated based on the 'Starter Pack' for 12 months. However, this would only be accurate if the customer opted to remove the channels that AUSTAR offered for free after the initial period of the contract.

To address the ACCC's concerns, AUSTAR has undertaken to disclose the cost of the package selected by the customer at the time the customer subscribes to the service. This will be the total cost to the customer of acquiring the AUSTAR services over the minimum term of the contract, assuming that the customer does not vary their subscription after the date of signing the contract.

Prior to entry into the contract, AUSTAR and/or its representatives must:
- when making a sale over the internet, display this cost explanation clearly and prominently in writing
- when making a sale by telephone, provide an oral explanation of the cost
- when conducting door-to-door or kiosk sales, provide this explanation clearly and prominently in both oral and written form.

AUSTAR will also enter into a trade practices compliance program to minimise its risk of further breaches of section 18 of the ACL.