TPG's broadband offer misleading

ONE of Australia's biggest internet providers has been found by a judge to have misled consumers with an offer of "unlimited" broadband downloads for $29.99. Justice Bernard Murphy ruled yesterday that TPG Internet Pty engaged in misleading and deceptive conduct and failed to reveal there were substantial extra costs. In his Federal Court judgment Justice Murphy said that some of the TPG ads, which were carried nationally on television, radio, newspapers and in cinemas, did not tell consumers they had to "bundle" the ADSL2+ service with a home phone rental for an extra $30 a month. The judge also found that some TPG ads gave the impression there was no set-up fee when a customer was in fact charged $129.95 for the installation of the broadband service. Justice Murphy said he had to look at the "dominant message" in the advertising and it was clear TPG's campaign gave the impression the total amount payable would be $29.99. "The ordinary or reasonable consumer taking in only the dominant message would have the impression the entire cost of the service is $29.99 per month, with no other charges and no obligation to acquire another service," he said. TPG was taken to the Federal Court by the Australian Competition and Consumer Commission, which alleged breaches of the Trade Practices Act and the Australian Consumer Law. Justice Murphy said TPG argued that the type of consumers seeking to buy an unlimited plan would realise the broadband plan would have to be bundled with their home phone and would also know there would be set-up charges. "TPG contends the class (of consumers) was unlikely to include first-time users of internet services as they could access cheaper plans which had download limits," the judge said. "I do not accept this. The class includes first time as well as more experienced users. There is a tendency in some consumers to purchase the biggest, the best, or the highest quality product or service, seemingly regardless of whether that service is appropriate to their needs." Justice Murphy said some first-time users would be unsure how much of a download limit they needed. The judge said he would fix a date for discussion between the parties about a penalty for the breaches.