Telcos slammed for 'confusopoly' of ads

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Telcos slammed for 'confusopoly' of ads

By Colin Kruger

AUSTRALIA'S telecommunications industry has continued to peddle advertising to consumers that is misleading, deceptive, unfair or a combination of all three, accord- ing to the Australian Communications Consumer Action Network.

The consumer advocate has accused the industry of breaching the Trade Practices Act in a complaint lodged with the Australian Competition and Consumer Commission.

It cited six examples of dubious advertisements which, among other things, offer ''free'' calls and texts that are unobtainable for the average customer, and ''unlimited'' plans with lengthy exclusions.

This follows ACCC action against Optus for false advertising over its claims to offer ''unlimited'' internet access and home phone calls.

"The industry trades on a 'confusopoly' that banks on the fact no reasonable consumer can compare different mobile or internet plans because they simply can't make sense of them," said ACCAN's chief executive Allan Asher.

In 2006, Telecom New Zealand chief executive Theresa Gattung admitted as much, saying mobile phone companies deliberately set out to confuse customers to make more money.

In September, Telstra, Optus and Vodafone gave the ACCC an enforceable undertaking that they would clean up poor advertising practices.

ACCC chairman Graeme Samuel said at the time: ''I remind all companies involved in telecommunications that the ACCC will continue its vigilant monitoring of their advertising practices, and will without hesitation take legal action to deal with any further flouting of the law.''

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