ACCC institutes proceedings against TPG alleging false and misleading broadband advertisements

The Australian Competition and Consumer Commission has instituted legal proceedings in the Federal Court, Melbourne, against TPG Internet Pty Ltd for alleged contraventions of the Trade Practices Act 1974.

The ACCC alleges that TPG's advertisements for its $29.99 unlimited ADSL2+ broadband plan are false and misleading because the advertisements represent to consumers that they can buy unlimited ADSL2+ broadband services for $29.99 per month.  In fact these services are only available when purchased together with home phone line rental from TPG at an additional cost of $30 per month, meaning that the minimum monthly charge payable is $59.99 not $29.99. 

The ACCC also alleges that TPG's advertisements do not adequately disclose two additional up front charges – a $129.95 broadband setup fee and a $20 home telephone deposit – which customers must also pay in order to obtain the unlimited ADSL2+ service.  

The ACCC is seeking declarations that TPG contravened the Act, injunctions (including interlocutory injunctions), pecuniary penalties, corrective advertising and costs.

The matter has been filed in the Federal Court's Fast Track list, and is listed for an interlocutory hearing at 10.15 a.m. on 22 December 2010 before Justice Ryan.