ITP to correct misleading 48-hour tax refund advertisement

ITP (The Income Tax Professionals) will broadcast a series of corrective advertisements during prime-time viewing on two Queensland television channels and provide refunds to affected consumers after Australian Competition and Consumer Commission action on misleading advertisements about tax refund services.

"In an extensive television advertising campaign in July and August, ITP offered consumers a 48-hour tax refund, saying 'no conditions' applied", ACCC Chairman, Professor Allan Fels, said today.

"But ITP do not, in fact, obtain Tax Office refunds in 48 hours but instead arrange loans for consumers against the amount of the anticipated refund. Further, an additional fee depending on the amount of the refund was charged. Most consumers were charged between $70 and $200 to get the 48 hour loan.

"The ACCC was concerned about the misleading nature of the advertising. Consumers were being unfairly enticed into ITP branches to take up the offer.

"Even more disturbing, some consumers were not getting their money within 48 hours due to a delay in processing the loans, but ITP continued to broadcast the advertisement anyway.

"The ACCC has received complaints from consumers affected by this advertising which was seen throughout south-east Queensland.

"The ACCC demands accuracy in advertising so consumers are provided with useful and reliable information to enable them to make informed decisions about the goods or services being offered.

"The ACCC is also concerned to ensure that refunds of the 48-hour charge are made to those consumers who were enticed by the advertisement into paying for a service that was not provided".

As part of the settlement agreement between the ACCC and ITP, the corrective advertisements are to commence broadcasting this Sunday during evening prime time viewing. They will continue to be broadcast at the same time for the rest of the week. Consumers who did not get the service they paid for will be invited from this Sunday to call 1300 555 773 to claim their refunds. In addition to the corrective advertisements and refunds, ITP will tell all consumers who contact ITP about their 48 hour offer the real facts of that offer, and will implement a trade practices compliance program to prevent future breaches of the Act.