Pocket Money Limited (PML) - Peter Kelly - s.87B undertaking

Pocket Money Limited (PML) trade in the promotion and sale of phonecards. PML advertised its international call rates in the May-September 2000 edition of 'Sydney - The Official Guide' and on its Internet site. In both the print and Internet advertising PML's international call rates were listed as a per minute charge. There was no marker or reference near the listed rates that brought the reader's attention to the applicable 10 cent per minute surcharge or the 55 cent connection fee. Further the print advertisement offered $5.00 worth of free calls but did not disclose that the offer was conditional on a minimum amount of calls being purchased by the consumer. The Commission considered that the above advertising raised implications under sections 52, 53(e) and 53C of the Trade Practices Act 1974.

PML has undertaken to:

• inform consumers responding to its print advertising that a 10 cent per minute surcharge and 55 cent connection fee applies;
• ensure in future promotions and/or advertisements that the fine print will not include important terms or conditions that significantly alter the value and/or character of the promoted product or service and that all the terms and conditions applicable to the products are clearly indicated and accessible to consumers; and
• honour the offer of $5.00 worth of free calls to consumers responding to the print advertisement and waive any requirement that a minimum value of calls be purchased to qualify for the offer.