The Australian Competition and Consumer Commission considers that advertising by telecommunications carrier AAPT Limited, of its flagship 'Smartchat' product, was misleading.
'The advertisements in question only ran one Sunday, in September last year,' ACCC Chairman, Professor Allan Fels, said today. 'But it was important to intervene, as this was only three months after the ACCC had accepted undertakings from AAPT in relation to problems with other Smartchat advertisements.
'In the ACCC's view, AAPT's September ads falsely implied that AAPT long distance call rates to anywhere in Australia, were always cheaper than Telstra's rates. The ACCC found that Telstra was actually cheaper in a number of significant circumstances. With price being such an important factor in purchase decisions, comparative advertising is an extremely valuable tool of competition, but only when scrupulous accuracy is observed.
'AAPT has given the ACCC undertakings which will involve even greater care being taken in future advertising, especially comparative advertising. It will also contribute $15,000 toward the education of the industry in compliance with the Trade Practices Act.'