IiNet has been ordered to pay a $204,000 penalty by the Australian Competition and Consumer Commission (ACCC) over recent ads for its Naked Broadband 250GB Plan.
The watchdog issued two infringement notices after finding it had “reasonable grounds” to believe two outdoor adverts failed to “prominently” state the total minimum price of the service and contravened Australian Consumer Law.
The adverts appeared on a tram and billboard in Melbourne in November 2014 and displayed a monthly price of $69.95 for the broadband plan. While the total minimum price was included in the advertisement, the ACCC found it was not displayed prominantly enough.
As iiNet is a publicly listed company, the amount of each infringement notice penalty is $102,000.
ACCC Chairman Rod Sims said when advertising part of a price of goods or a service, the total minimum price must also be visible.
“Consumers must be able to understand the true cost of an advertised product so that they can make informed purchasing decisions,” Sims said.
“Prominence means that the total minimum price can be easily seen and strikes the attention of the consumer. In assessing whether the total minimum price is prominent, it is important to consider the context in which the advertisement appears – for example if the advertisement is on a moving vehicle, where consumers may only be able to see the advertisement momentarily.”
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