ACCC institutes proceedings against CardCall over pre-paid phone cards

The Australian Competition and Consumer Commission has instituted legal proceedings in the Federal Court, Sydney against CardCall Pty Ltd for alleged contraventions of the Trade Practices Act 1974 in relation to the sale of its Talk Tomato, Daybreak, OZcall and Its Green pre-paid phone cards.

The ACCC alleges CardCall represented certain phone cards would provide consumers with a specified amount of call time when that was not the case. The ACCC also alleges that CardCall represented that no fees other than timed call charges would apply when in fact other fees were charged.

The ACCC alleges CardCall's conduct breaches ss 52, 53(aa), 53(c) and 55A of the Act which prohibit companies from engaging in misleading or deceptive conduct and from making certain false or misleading representations.

The ACCC is seeking declarations that CardCall's conduct breached the Act, injunctions, corrective advertising, community service orders and costs of the proceeding.

The matter has been listed for directions on 13 May 2009.