Misleading and deceptive conduct in the promotion of mobile phone and access plan packages has led to consent orders being issued by the Federal Court, Brisbane, and a court enforceable undertaking being provided by Moore Talk Communications Pty Ltd.
Between February 1999 and October 1999, Moore Talk Communications Pty Ltd, trading as MT Marketing, operated a national telemarketing campaign out of Brisbane.
During the campaign, representatives of MT Marketing contacted potential customers by telephone and asked them to take part in a survey. At the completion of the survey, consumers were advised that they could be selected to receive a complimentary digital mobile phone. If the consumer expressed interest, another MT Marketing representative then rang the consumer back, advised that they were one of the lucky people selected to receive a complimentary digital mobile phone, and faxed through details of the phone specifications and two mobile phone access plans.
Receipt of the mobile phone was conditional upon the consumer signing up to an access plan with a telecommunications service provider. If the consumer agreed to this, an application for mobile services was faxed through to the consumer for signature. However, the terms and conditions attaching to the supply of such a service were not provided to the consumer before signing.
The Australian Competition and Consumer Commission believes the company engaged in misleading and deceptive conduct and that approximately 2000 consumers were affected by MT Marketing’s conduct.
The Federal Court consent orders prohibit MT Marketing from conduct that would mislead consumers as to the nature of any future telemarketing activities. Further, they ensure that a full and legible copy of the relevant terms and conditions of an application for the supply of mobile services will be provided to all potential customers, before asking the customer to sign on.
Moore Talk Communications Pty Ltd has also provided the ACCC with a court enforceable undertaking under section 87B of the Act that it will:
- conduct an internal review of its operating procedures
- ensure that all potential customers receive a copy of the terms and conditions attaching to the application for mobile services
- sign the Australian Communications Industry Forum Industry Code on Customer Information on Prices, Terms and Conditions
- and implement a trade practices compliance program.
"The ACCC considers the misleading nature by which MT Marketing promoted mobile phones and access plans to be very serious", ACCC Chairman, Professor Allan Fels, said today. "This company contacted thousands of consumers across Australia and endeavoured to sign them up to mobile phone access plans without providing them with the terms and conditions of the contract the customers were to sign.
"This investigation shows that telemarketers in particular need to ensure that consumers are provided with all relevant information upfront, both as to the nature of the promotion, and any terms and conditions attaching to the contract involved".
Service providers Signal Telecommunications Pty Ltd, RSL COM Personal Communications Pty Ltd and One.Tel Limited have also provided the ACCC with court enforceable undertakings in relation to this matter. MT Marketing was, at various times, acting as a dealer for all three providers. In essence, the service providers have undertaken to write to all customers signed up by MT Marketing who did not receive a copy of the terms and conditions before signing their application for mobile services, and offer them the opportunity to cancel their contracts. The service providers will also review their operating procedures to ensure that all customers receive a copy of the terms and conditions, and implement or review their trade practices compliance programs.