Boost Tel Pty Limited (Boost) found by Court to have made false representations regarding phone cards
The Federal Court declared that Boost engaged in false misleading and deceptive conduct in relation to cards promoted from at least February 2007 to 5 July 2010 by:
- representing that no fees other than timed call charges would apply when, in fact, an in-call surcharge applied
- representing that, on the cards:
- a certain number of minutes was available
- a certain call rate per minute was available
when in fact:
- total number of minutes and stipulated call rate could, at best, be achieved if:
- one continuous call was made, or
- calls made precisely matched particular charging increments;
- number of minutes available and call rate per minute were diminished in value by an in-call surcharge and other additional fees and charges which applied in respect of certain calls.
Consumers are urged to make sure they are aware of all applicable fees and charges when buying phone cards.
The Australian Competition and Consumer Commission brought the proceedings in the Federal Court of Australia in relation to breaches of sections 52(1), 53(aa) and 53(c) of the Trade Practices Act 1974 which prohibit false, misleading or deceptive conduct.
The Court made orders that restrained Boost from engaging in similar conduct for a period of 2 years, required it to publish this notice and to implement a trade practices compliance program. A copy of the decision and the detailed orders can be found at www.fedcourt.gov.au.