'Free' mobile phone promos draw ACCC NT court action

The Australian Competition and Consumer Commission has instituted Federal Court proceedings in Darwin against Wavequest Pty Ltd (trading as Alice Computers) and Prebeal Pty Ltd (trading as Mobile Phones Etc) alleging misleading and deceptive conduct in breach of the Trade Practices Act in relation to the sale of mobile phones in the Northern Territory.

The action follows newspaper advertisements on 23 and 30 March 1998, and shopfront advertising in Alice Springs, allegedly promoting 'free' mobile phones without adequately disclosing that these companies were allegedly offering for sale packages comprising a telephone and the requirement to enter an agreement with One.Tel Pty Limited, a mobile network service provider.

The ACCC alleges that these packages were not 'free'. The ACCC has also commenced proceedings against Mr Kevin Clerke for being directly, or indirectly, knowingly concerned in the conduct alleged above. Mr Clerke is a Director of both Wavequest Pty Ltd and Prebeal Pty Limited.

The ACCC is seeking from the court injunctions, declarations and refunds for consumers. A directions hearing will be held in the Federal Court, Darwin at 9am on Friday 1 May 1998.