ACCC sees Telstra in court over 'misleading' Next G ads

Communications regulator the ACCC (Australian Competition and Consumer Commission) has taken Telstra to court over what it claims are misleading statements contained in advertisements for the telco's Next G network.

The watchdog announced yesterday it intended to start Federal Court proceedings against Telstra, after earlier raising concerns that taglines included in advertising materials, such as "Everywhere you need it" and "Get the coverage you need", were misleading and should be removed.

ACCC chairman Graeme Samuel said in a statement at the time: "The ACCC had particular concerns about Telstra's unqualified use of the taglines 'Everywhere you need it' and 'Get the coverage you need' with Telstra's Next G network, when the whole of Australia is not covered and coverage is not always available where consumers need it."

Telstra said it removed the offending ads in July, weeks before the ACCC had taken it to task over the coverage claims.

No date has been set for the hearing but the ACCC is seeking an injunction to prevent Telstra from using similar claims until the case is settled.

The ACCC says the ads in question have contravened the Trade Practices Act and alleged that Telstra has engaged in misleading or deceptive conduct through its advertising.

A Telstra spokesperson said: "The ACCC is clearly hand in glove with the government in doing everything it possibly can to undermine the interests of Telstra shareholders. This is anti-consumer, anti-investment, petty, regulatory garbage."

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Talkback 10 comments

  1. TELSTRA's CLAIM EVERYWHERE you need it Anonymous -- 18/09/07

    Telstras claim such as "Everywhere you need it" and "Get the coverage you need", were misleading and should be removed.I totally agree with this as I was told and given assurances by the smooth talking Telstra account manager that the Next G would work in the Hunter Valley ,. I am unable to get phone coverage in my home at Mulbring. The GSM works fine , as for the Telstra Next G turbo Modem , this only works with a CD2195 1m high gain aerial , great look on a lap top. The Telstra manager said I should log on to the Telstra web site and notify them of the black spot , this has been a waste of time as the site comes up with errors abd my complaint has not ever been lodged, I think their black spot site notification is a joke and for my many attempts a waste of my time that Telstra bills me for. Spent the money ,24month Next G Turbo Modem plan which is wrong it shoould be monthly for the first 3 months to see if it will work then a reduced rate for the longer plan , I state the Next G system failed to perform !! Not Happy Jan

    1. Blackspot Brightspot Bright spark Anonymous -- 18/09/07

      Should be removed? They were removed well before the ACCC had even gotten off their @ss and did anything, was it their poor management or another telco's lawers that made them take notice. I am sure a normal citizen hadn't sat back for weeks after the advertising was removed from the air before lodging a complaint.

      The ACCC is setting a precedent, what about court action against Toshiba's "Weighs Nothing, Does Everything" laptop (on their web site today and street sinage)? or Nothing refreshes like... or Just aound the corner ... advertising?

      Will they take all of these companies to court as well? GET REAL

      I have used the blackspot link and have had a reply with some minor improvement in outer Perth. They have improved coverage in my situation although I am sensible and know not every place will have perfect coverage, lots of concrete or steel, hills or large objects between you and the tower will degrade coveage.

      Try accessing the site from someone else's computer and you might get it to work. I have installed Firefox as well as IE as sometimed I have problems with one at certain sites.

      Is there any other company that even offers this feature? I have tried to find the same feedback service for other mobile companies with no luck, even when I call them they have responded that they are no longer improving the coverage in the area outright without even sending it to another department.

    2. Re Blackspot Brightspot Bright spark Anonymous -- 18/09/07

      This sounds like a plant by Telstra, you only have to work in the company to see the propaganda dished out every day on how wonderful and rosey things are in Telstra land.

      Sure every network has problems its just that Telstra or should I say the American contingent can't admit it.

      Perhaps if they spent more time on improving the company and stop blaming everyone else for its shortcomings it would be a world class telco delivering real customer service.

    3. Admit mistakes? steve -- 19/09/07

      Reading comments by anonymous people for or against telstra on this and several other stories makes me wonder how many of these comments are posts by not only telstra people but also by plants by other anti-telstra companies. I have never seen so much rubbish being posted by people, all i can say is that at least the pro-telstra people seem to place some effort into the comments and appear to provide more believable information. If I had to make a judgment based on all of the comments in that and other telstra stories on this site I would have to side with telstra.

    4. Telstra Next G Lack of Coverage Anonymous -- 08/10/07

      My experience with Next G has gone from bad to worse. After being convinced to change to Next G (whilst CDMA coverage was out for a week in my area) with assurances that the coverage is "exactly the same" as CDMA and will cost you less. I am now paying nearly double what my bills used to be. My complaints to Team Alias (a Telstra sales team) have gone unanswered for over 11 months and I can get no satisfaction from Technical Support either. Off the record the Telstra tech people will tell you Next G was rolled out way to early and the network performance is dismal in country areas. I can confirm that the coverage in country areas is a joke. CDMA outperformed Next G some 25 - 40km from a tower. My Optus 2G handset, when handheld, outperforms my Next G handset's performance in a car kit with external aerial. You can waffle on about Telstra's right to carry on business as profitably as is possible, but that doesn't alter the fact that the performance of the Next G network in country areas is abismal.

    5. re: Telstra Next G Lack of coverage Anonymous -- 08/10/07

      Go to http://www.telstra.com.au/nextgnetwork/coverage.htm

      They promise to provide a response and this isn't by salespeople chasing a dollar.

  2. Gang of three. Sydney Lawrence -- 19/09/07

    Steve how perceptive you are and your remarks are certainly correct and spot on.

    With petty nitpicking all adverts could have aspects that may not be exactly factual and yet are acceptable to the general public. This ACCC tirade is of course a part of the Howard-Coonan attack on Telstra for having the audacity to want to run the Company in a fair and efficient manner.

    The problem for the Howard-Coonan-ACCC gang is that after the coming election old things will pass away, and all things will become new. We look forward to a "fair go" for Australia's Telstra.

  3. Telstra - Get up to speed with the Trade Practises Act Gavin -- 19/09/07

    If I was Telstra I would be putting all the employee's through a Trades Practise Act course so they can brush on the legality of their behaviour. The attitude to the issue in itself is damming in that they even admitted that they have done wrong then decide to try and chastise the ACCC for doing its job. The fact of the matter is if you advertise in a misleading way and even remove the adverts you can still be prosecuted up to seven years after the breach. Telstra do yourself and your share holders a favour and start to realise that you're not above the law. Maybe when you start to focus on improving your business instead of blaming everyone else maybe then I'll invest in Australia's largest Telco.

    1. Level playing field Aaron -- 20/09/07

      I see one of the pivotal issues as not the strict letter of law in terms of right to prosecute for misleading ads but as the uniform adoption of these laws. The trade practices act 1974 is a little ambiguous and following this should require a strict set of rules to remove the possibility of confusion. Why wouldn't the ACCC prosecute hundreds of other organisations that clearly breach the same guidelines as that are being applied in Telstra's situation. The section of the TPA the ACCC is using against Telstra has been used before but a new benchmark has been set that will now need to be applied to an enormous number of ads. Soon every ad will need to have an extra 30 seconds of disclaimers just to avoid lawsuits.

  4. Trade Practices Act Anonymous -- 16/06/08

    Telstra has blithely ignored this legislation over the years and I believe that it is australian champion at breaching Section 52 b 3 (c).

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