The Federal Court has found that Clarion Marketing Australia Pty Ltd engaged in misleading and deceptive conduct with regards to its scratch card promotion.
During the period between January and October 2009, Clarion Marketing Australia distributed around 10 million promotional scratch cards for its Moby Planet mobile premium service. The cards were placed in popular magazines and newspapers across Australia as well as letterbox drops.
“The scratch cards appeared to be a game of chance but were really a ploy to trick consumers into signing up for a mobile premium subscription service costing $10 per week," ACCC Chairman Graeme Samuel said.
The cards offered prizes that included cash, holidays, electrical and electronic items as well as a Mercedes SLK. However, any consumer that scratched the card found that the most common prize was a holiday voucher that required a minimum spend if it was to be used at all.
"The only real winner here was Clarion as they made money from consumers who were misled into signing up to a costly mobile premium subscription service," Mr Samuel said.
The court has made orders for declarations, injunctions to stop future conduct and correctives by way of a text message to be sent to current and former subscribers advising them of the outcome of the proceedings.
The text message needs to be sent by Clarion before 22 January 2010 and will have to read as follows:
[Free msg] Federal Court finds MobyPlanet scratch cards misleading after ACCC action. If you think you were misled, visit mobyplanet.com.au or call 1300558851
Consumers who believe that they have been misled may wish to exercise their right to a refund or similar by contacting their provider.
In the past year the ACCC has taken on a number of traders in the mobile premium services industry including three based overseas, TMG Asia Pacific’s parent company based in the Netherlands, AMV Holdings Limited based in the United Kingdom and Teracomm Limited based in Bulgaria.
“In early 2009 the ACCC warned the industry to clean up its act or face the consequences. This is another example of successful court action taken by the ACCC in the area of misleading mobile premium services promotions," Mr Samuel said.