Tag Archives | Trade Practices Act

ACCC launches telco trade practices blitzkrieg

By on 2 October 2008 in advertising, Trade Practices Act

ACCC today launched heavyweight legal proceedings in the Federal Court of Australia against 28 parties involved in ‘bundled services deals’, alleging that customer equipment is ‘secretly’ financed while the customer (wrongly) believes they are getting ownership of it for free.

The deals, pitched at SMEs, involve tens of millions of dollars all up.

ACCC alleges that the way the deals operate and were marketed, there have been extensive breaches of sections 52, 53(e) and 53(g) of the Trade Practices Act 1974 and/or sections 12DA(1), 12DB(1)(e) and (12DB(1)(g) of the Australian Securities and Investments Commission Act 2001.

ACCC also says that these kind of bundled services deals constitute exclusive dealing, in breach of section 47(6) of the TPA.

Make no mistake, this kind of action is a big deal for ACCC and they’ll run it accordingly.

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TMG Asia Pacific rolls over in Federal Court

By on 2 October 2008 in Trade Practices Act

In an earlier post, we reported on Federal Court action by ACCC against TMG Asia Pacific Pty Ltd ACN 119 828 698.  ACCC alleged that the company had engaged in false, misleading and deceptive conduct in contravention of the Trade Practices Act 1974.

According to the ACCC, advertisements for three premium-SMS based competitions run by TMG failed to adequately disclose:

  • that to be eligible for the prize, participants were required to pay a $5 joining fee and respond to a maximum of 10 quiz questions at $5 each
  • participating in the quiz also resulted in the consumer signing up to a subscription quiz consisting of six SMS messages per month at the cost of $5 each, and
  • that prizes could not be awarded to residents of the ACT, Victoria and Queensland even though they would be charged for the service.

On 1 October 2008, the case settled in the Federal Court.  TMG rolled over and gave the ACCC what it wanted.

We explain the outcome, and how companies can deliver cost effective trade practices compliance programs.

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Single price law proposed to Parliament

By on 29 September 2008 in advertising, Trade Practices Act

Last week, the Trade Practices Amendment (Clarity in Pricing) Bill 2008 was introduced to Federal Parliament.

If passed into law, the Bill will amend the Trade Practices Act 1974 to mandate advertising of a single buy price for certain goods and services.

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Complying with ACCC demands … on a budget

By on 19 September 2008 in General, Trade Practices Act

A trade practices compliance program is always a good idea.  It guards against infringements and helps to reduce penalties if something does go wrong.

It’s especially important if you use a call centre for telemarketing.  Rest assured … if you don’t arrange for compliance training, the agents won’t get any.

But when the ACCC demands that you undertake a compliance program, it’s not ‘if’ but ‘how many bucks will we blow on this ?’

Here’s a case study on how to deliver a course that can satisfy court orders, including agent training, without a massive price tag.

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It’s all about the main message, stoopid

By on 24 August 2008 in How not to do it, Trade Practices Act

Time and again ISPs and telcos pump out advertisements that upset the ACCC and other regulators.  Time and again the advertisers are astonished that anyone could be unhappy about their adverts.

It’s time the industry learned about the ‘main message’ rule.

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ACCC sues premium service provider

By on 24 August 2008 in Trade Practices Act

It’s up to the Federal Court to decide on the ACCC’s recently filed legal action against premium service provider TMG Asia Pacific Pty Ltd.

I can only say that I’m pleased that this area of the telco industry is coming under the spotlight.  It’s a disgrace that so many dodgy operators get away with so much.  And a disgrace that the mobile network operators haven’t done whatever it takes to rein them in.

I’ll be following this case as it develops in court.

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Bundling ruled illegal !

By on 23 August 2008 in Trade Practices Act

Do we have your attention ?  The Federal Court of Australia has ruled that a product bundling arrangement is illegal under the Trade Practices Act 1974.

Before you panic, you need to understand that the decision was based on a pretty special set of facts that would rarely occur in the telecoms industry.  The reason we’re talking about the case is to show you that it can happen, and how.

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