The special call rates are linked to a number of Telstra mobile contracts, and only apply to the first five minutes of the call, a fact the ACA feels the telecommunications heavyweight did not make sufficiently clear to customers.
"Telstra's practices in the use of disclaimers to qualify the advertised offers, and the placement and size of those disclaimers, is in the ACA's view, a clear breach of the code," ACA chairman Tony Shaw said.
Shaw also criticised the company for their response to the ACA.
"The ACA has admonished Telstra a number of times over its advertising practices," Shaw said, adding "On this occasion the ACA has not been satisfied with Telstra's response," he said.
Promoting offers, especially mobile phone contracts, and burying important information in the fine print can "seriously mislead" consumers, Shaw said.
The ACA warned that if Telstra did not comply, they may issue a directive requiring the company do so. If Telstra still fails to meet its obligations, it may face heavy penalties imposed by a court.
