The Australian Competition and Consumer Commission today instituted proceedings in the Federal Court, Melbourne against Telstra Corporation Limited in relation to its pre-paid long distance calling card product called 'Say G'day'.
The ACCC has alleged misleading and deceptive conduct, and false and misleading representations on the Say G'day cards and vouchers, website and associated marketing materials. All the alleged breaches relate to the charges incurred in accessing the long distance service using the "FREECALL™ 1800 099 032" phone number.
The ACCC alleges that Telstra has engaged in conduct in breach of sections 52 and 53(e) of the Trade Practices Act 1974 by making various representations to the effect that the 1800 access number was "free", "a free call from fixed phones" and/or would not be material or significant in the context of the overall charges of the call to be placed when, in fact, the ACCC alleges the 1800 access number is not free and instead costs 53 cents per minute in addition to the call rates. The ACCC alleges that in contrast to the 1800 access charge, the promoted call rate for overseas locations range from 5.9c per minute to $1.95 per minute.
The ACCC is seeking court orders including:
- declarations that Telstra has breached the relevant provisions of the Act
- injunctions restraining Telstra from engaging in the same conduct in the future
- refunds for consumers
- an order requiring that Telstra improve its current trade practices compliance program for Part V (consumer protection) provisions of the Act
- costs.
The matter has been listed for a directions hearing in the Federal Court, Melbourne on 15 November 2002 at 10 a.m.