Internet service providers have been warned to watch their advertising after complaints from consumers to the Australian Competition and Consumer Commission and the Telecommunications Industry Ombudsman.
In a joint statement, ACCC Chairman, Professor Allan Fels, and the TIO, Mr John Pinnock, said as more and more consumers hooked onto the Internet, more were also being frustrated by advertising which was at the least confusing and the worst misleading and deceptive.
The ACCC is particularly concerned about advertisements placed by Internet service providers (ISPs) which misrepresent the price of Internet access and don't disclose all the offers conditions, including full cost of access to the Internet, Professor Fels said.
With the assistance of the TIO, the ACCC has examined a number of advertisements which offer:
- free Internet access;
- particular bandwidth;
- nominal fees for access;
- free software;
- free modem and software installation; and
- access speeds.
But often the advertisements neglect to give other important conditions such as:
- the existence and amount of additional annual registration fees;
- restrictions on times of access and length of sessions;
- need to make payments by credit card;
- requirements for prepayments; and
- telephone charges for ISP's nearest contact (relevant for regional users).
Mr Pinnock said advertisements which simply added conditions apply were not sufficient unless all the material conditions and charges were stated.
Internet access is an exciting new area of communications for many consumers, Mr Pinnock said. But it must be regarded as honest and safe. Customers turned off in early days by bad experiences - such as unexpectedly large bills - may never return.
The ACCC has recently circulated an information sheet to 900 ISPs outlining their rights and responsibilities under the Trade Practices Act.
The sheet outlines what pricing details must be included, a warning about disclaimers and qualifications, tips for trouble-free comparative advertising, rights and responsibilities of ISPs under the Act, 'danger words' and a checklist.
And the ACCC will continue to monitor advertising and come down hard on those who don't heed our warning, Professor Fels added.
The Telecommunications Industry Ombudsman investigates and resolves complaints as an office of last resort. The Australian Competition and Consumer Commission is the national consumer protection and competition policy agency.
For further information about this media release:
Professor Allan Fels, Chairman, (03) 9290 1812 Ms Lin Enright, Director, Public Relations, (02) 6243 1108 Mr John Pinnock, TIO, (03) 9277 8777