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2degrees hit with charges over alleged misleading 'free Aussie roaming' claims

Author
Cameron Smith,
Publish Date
Tue, 7 May 2024, 11:49am
Telco 2degrees is in hot water with the Commerce Commission over its advertising for "free Aussie roaming" for business mobile plans. Photo / 123rf
Telco 2degrees is in hot water with the Commerce Commission over its advertising for "free Aussie roaming" for business mobile plans. Photo / 123rf

2degrees hit with charges over alleged misleading 'free Aussie roaming' claims

Author
Cameron Smith,
Publish Date
Tue, 7 May 2024, 11:49am

罢丑别听Commerce Commission听has hit telco听2诲别驳谤别别蝉听with eight charges under the Fair Trading Act for alleged misleading claims about their 鈥渇ree Aussie roaming鈥 for business mobile plans.

The watchdog alleges that 2degrees made claims in its听advertising听between 2020 and 2023 that created the impression that customers would have the ability to roam year-round in听Australia听at no extra cost, when that was not the case.

Instead, the 鈥渇ree鈥 roaming was capped at 90 days each year. If customers exceeded 90 days of roaming, they would be charged per day of additional roaming.

A spokesman for 2degrees said the cap had since been removed completely in response to the commission鈥檚 investigation.

鈥淎 small number of business connections had roaming charges applied when in Australia for more than 90 days in a year and following our engagement with the commission, we have now refunded more than 90 per cent of those businesses,鈥 the spokesman said.

鈥淲e will be following up on the remaining customers which exceeded the cap during that period to ensure they are not out of pocket.

鈥淲e understand the need for advertising to be clear and not misleading and we are very committed to continuing to offer our Free Aussie Business Roaming benefit, which is the only offer of its type for NZ businesses and is incredibly valued by those who use it.鈥

Vanessa Horne, general manager of fair trading for the Commerce Commission, said businesses needed to make sure that key information about claims they鈥檙e making is easy to find and not buried in the fine print.

鈥淐onsumers should be able to rely on the truth and accuracy of advertising headline claims as they are often central to the overall impression created by the advertising,鈥 Horne said.

Horne said describing something as 鈥渇ree鈥 is likely to sway a consumer鈥檚 purchasing choice and businesses risk breaching the Fair Trading Act when limitations or conditions to headline claims are not clearly disclosed.

Last year, rival telco One NZ said it was听phasing out its 鈥100 per cent mobile coverage鈥 campaign听for a new 鈥淐overage like never before, launching 2024鈥 tagline, after receiving a 鈥渟top now鈥 letter from the commission.

The regulator said the term 鈥100 per cent mobile coverage鈥 was potentially false or misleading.

鈥淭hese concerns arise from the absolute and unqualified nature of the claim and that the majority of the advertising does not make it clear that limitations apply to the mobile coverage,鈥 Commerce Commission chairman John Small said at the time.

This article was originally posted on the NZ Herald .

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