Telstra cooperates with ACCC over advertising concerns

The Australian Competition and Consumer Commission has accepted Telstra's proposal to resolve concerns over recent T-Time Rewards Options advertising.

"The ACCC was concerned by representations made in Telstra’s initial television advertisement", ACCC Chairman, Mr Graeme Samuel, said today. "The ACCC believed the commercial did not disclose material conditions or contain sufficient information regarding the offer.

"The ACCC considered that the advertisement was likely to mislead* consumers.

"Qualifications to offers, such as eligibility and other conditions, should be introduced at the same time as the representations they qualify. Disclosure only at the point of sale or once consumers have contacted the trader are not enough. This applies to all commercials – especially those which have come to be referred to as 'teaser' advertisements".

Telstra began running the commercial on 1 May 2004. The ACCC raised its concerns with Telstra two weeks later, and by 18 May 2004, Telstra responded by ceasing broadcasts of the advertisement. Telstra has also:

• agreed to run a commercial clarifying the features, terms and conditions of the offer and
• contact customers who called the number in the commercial and signed-up to the offer.

Telstra has agreed to take these steps without admitting that its conduct was likely to mislead or deceive.

"The ACCC is pleased with the speedy outcome that has been achieved for consumers who may have been affected by the conduct".

Background

*Sections 52 and 53(c) and (e) of the Trade Practices Act 1974 prohibit a corporation, in trade or commerce, from engaging in conduct that is misleading or deceptive, or is likely to mislead or deceive, or from making false or misleading representations with respect to the price of goods or services, or from representing that goods or services have sponsorship, approval, performance characteristics, accessories, uses or benefits they do not have, in connection with the supply or possible supply of goods or services or in connection with the promotion of the supply or use of goods or services.