Archive | June, 2009

FunnyTel smashes ACCC

By on 11 June 2009 in advertising, Funnytel, New laws, Trade Practices Act

funnytel-zeroFunnyTel’s legal and hospitality manager Chad Blake has announced the company’s total bypass of ACCC’s new component pricing law.

In a brilliant moment, Chad was being shouted at by FunnyTel CEO Steve that the company didn’t have to employ him, and every day at his desk was a favour.  Steve’s a motivational speaker in his spare time.

But then Chad realised … Steve doesn’t need me, and the customers don’t need us !  Everything they buy is optional, and options don’t need to be included in the total product price, do they ???  So FunnyTel’s famous ‘Zero Heroes’ campaign was born and ACCC was smashed again by Australia’s fastest thinking telco.

‘And it’s interesting to note’, says Chad, ‘that we didn’t need to waste a single dollar on external advice.  The ‘$Nuffin to pay’ campaign is proof you don’t need Bourke Street tossers to create a totally legal campaign.’

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TPG gets new law a bit right !

By on 10 June 2009 in advertising, New laws, Trade Practices Act

tpg-goofLet’s give credit to TPG.  The compliance-challenged comms co doesn’t often set a standard, but after recently breaching the new component pricing law, it has taken a reasonable shot at complying with today’s web site advert.

Sure, its math doesn’t make sense.  $20 SIM plus $20 deposit does not equal $52.99.  But we know what they mean … it’s the $20 SIM plus the $20 deposit plus the $12.99 for a non-contracted month that adds up to $52.99. 

And the total price isn’t super-prominent, but it’s not in micro-print, and it is in a clear area of its own, and it is immediately below the headline pricing, and it’s not a big or cluttered ad, and it is in capitals.  ACCC might debate whether it passes the ‘prominence’ test but by TPG’s standards, it’s a good effort. 

And you know two crazy things ?

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Optus monsters component pricing law

By on 10 June 2009 in advertising, New laws, Trade Practices Act

Just days after ACCC wrote to the industry demanding immediate compliance with its new component pricing law, mega-telco Optus has ignored it.

Today’s web carries a flash ad spruiking a ‘new monster value ‘yes’ $59 cap, ‘so good, it’s scary’.  So is the fact that it’s an illegal advertisement.

Well, $59 is the monthly base price for the plan, so unless it’s a month-to-month plan (so that $59 would be the total cost as well as the monthly cost), the advert needs to state prominently the total contract cost.

Well, the flash banner doesn’t, and neither does the web page it links to.  The web page includes total cost down the bottom and in small print.  But ‘prominent’ ?  No way.  Optus is plainly in breach of section 53C of the Trade Practices Act.

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ACCC advice doesn’t add up

By on 9 June 2009 in advertising, How not to do it, New laws, Trade Practices Act

accc-goofJust to show that CSPs aren’t the only ones we are watching …

ACCC’s new guide to the component pricing law shows how easy it is to slip up in advertising. 

Click on the sample advert to enlarge it, and you’ll find that – despite ACCC encouragement – the advertiser shouldn’t advertise a total price of $2,240.  We’re all human, even the regulator.

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TPG still can’t get liability law right

By on 6 June 2009 in How not to do it, Trade Practices Act

unwise-tpgAre some companies allergic to best practice legal compliance ?  TPG has finally changed a seriously illegal misrepresentation about handset warranties in its Mobile Fair Go policy, after we highlighted the problem in December 2008 and again in May 2009.

That’s good, but not good enough.  The really red hot misrepresentation has been removed from the document but it’s still likely to mislead consumers.  It’s a good example of misleading by what you don’t say.

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Oh, no ! Dodo !

By on 4 June 2009 in advertising, How not to do it, Trade Practices Act

dodo-4-6-09-smallWe admit that we’re fascinated by Dodo.  Do they even know there’s a Trade Practices Act, despite being dealt with by ACCC for serious breaches ?

Take a look at the Naked DSL advert in the top left hand corner of Dodo’s home page as at 4 June 2009.  In a few square inches, there are three TPA breaches. 

We’ll explain what they are.

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Advertising prices: ACCC prepares to kick butt

By on 4 June 2009 in advertising, New laws, Trade Practices Act

accc-kickIn the next step in its war on ISP / telco advertising, ACCC has now written to individual providers warning them that there’s no grace period for compliance with the new component pricing law.

‘You should review your marketing across all media including television, radio, print, billboards, posters, websites et cetera,’ says the regulator. ‘The ACCC is concerned that some telecommunications service providers are making component price representations in ways which may not comply with the recent amendments to the TPA.’

Any ISP or telco that isn’t up to speed on the new Trade Practices Act component pricing law needs to act immediately. 

We can’t say we weren’t warned.

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ACCC needs a communications guru

By on 1 June 2009 in How not to do it, Trade Practices Act

no-messageFunny how we all have blind spots.  When it assesses industry advertising, ACCC is keenly aware that a simple, clear message impacts on ordinary people, and that complicated T&Cs and small print aren’t taken on board.

But when it communicates with those same ordinary people, ACCC can forget all about the power of the main message and descend into baffling lawyer-speak.

ACCC should engage a marketing expert to offer input into its recall notices and consumer notifications.  If it wants to communicate important messages, it should use the skills of a communicator.

We’ll look at a couple of examples and analyse what goes wrong.

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