Telstra has copped a $102,000 penalty from consumer watchdog the Australian Competition and Consumer Commission (ACCC) over an iPhone 6 advertisement that hid the total cost of a monthly phone plan in the fine print.
Telstra’s full page ad appeared in The Age on 27 September offering an iPhone 6 and phone plan bundle for the headline price of $70 per month. But the small print revealed there was an additional $11 monthly cost for the iPhone 6, bringing the total cost to $81.
The ACCC considered the ad false or misleading and contravened Australian Consumer Law.
ACCC Chairman Rod Sims said businesses had to be careful about using attention-grabbing headline prices that have the potential to mislead consumers about the actual price they’ll pay.
“Consumers should be able to understand the true cost of an advertised product so they can make informed purchasing decisions,” he said.
The $102,000 infringement notice is not an admission of a contravention of the Australian Consumer Law.
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