Cable & Wireless Optus has been required to renew its commitment to provide unlimited local calls to customers on certain call plans after intervention by the Australian Competition and Consumer Commission over concerns that Optus had tried to go back on earlier promises.
Optus has admitted that it misled some consumers in attempting to restrict the number of calls they could make whilst on Optus's Unlimited Call plans.
"This move should send two very clear messages to all players in the telecommunications industry and to businesses generally", ACCC Chairman, Professor Allan Fels, said today.
"First, terms such as 'unlimited' cannot usually be qualified and businesses should be extremely cautious in placing limitations on what consumers would ordinarily see as unrestricted product offerings.
"Second, if businesses try to limit expressions such as 'free', 'unlimited' or 'all you can use' then these exclusions must be clearly stated at the time they are made".
With regard to acceptable user policies, Professor Fels said that while the ACCC recognised the need for such policies to deter abuse in network industries, it was concerned in relation to the policies being adopted by a number of companies. The ACCC has received a number of complaints from consumers about acceptable user policies and will continue to monitor the use of such policies.
Optus's admission follows the ACCC investigation of complaints, including referrals from the Telecommunications Industry Ombudsman.
In March 2000 Optus initially advertised its unlimited local call package with a statement 'your household can make hundreds or thousands of local calls a month'. Optus then introduced a policy in early May, called the Optus Local Fair Go Policy that sought to limit the 'unlimited' local calls to fewer than 500 calls per month.
Further, customers were required to sign a 12-month contract, preselecting Optus for long distance calls, but the unlimited local call component expired earlier, on 31 October 2000.
"The total package was a 12-month plan, yet the central marketing feature of the plan was only available for a few months. This was not sufficiently disclosed and even where it was disclosed Optus admitted that its advertising material was ambiguous".
In the undertaking accepted by the ACCC, Optus has agreed to extend its offer for a further year, allowing all customers on the unlimited local call packages to make unlimited calls until 31 October 2001.
"This is a significant outcome for consumers, which ensures that they get the service that was first represented".
The ACCC acknowledges the assistance provided by the TIO that demonstrates the way in which the two independent bodies work together for the benefit of consumers. The ACCC also recognises Cable & Wireless Optus's cooperation in resolving this matter.