A directions hearing is scheduled for May 20, in Federal Court.
When asked if there was any truth in the allegations, Virgin Mobile spokesperson Nathan Rosenberg said: -Absolutely not. In our view we have been as upfront as possible with customers."
"Virgin companies have a mantra to go out into the market and revolutionise the way things are done...we do shake things up a bit but the company has always be fair and honest and upfront in everything we do," Rosenberg said.
Rosenberg described the Dial High Club package as a -unique offer" and said -some of the old rules that apply with the Trade Practices Act don't fit around it".
Virgin Mobile claims it has changed the structure of the ads since the ACCC first complained back in February. The ACCC wanted the company to put a figure on what the minimum cost to customers would be if they terminated their agreement, but according to Rosenberg it's difficult to determine what that would be because unlike other mobile players, it offers month-by-month agreements as opposed to a 24-month contract.
Rosenberg explained that customers can either choose to pay the full price of handset up-front or opt for an instalment plan where they pay the phone costs as a monthly instalment. Alternatively, Virgin Mobile will pay the instalments for consumers if they commit to a total monthly spend. -The minute you decide to leave you have to pay out your instalments," he said. -The ACCC wanted us to put a total figure on that but it's got to the point where customers find the new ads a little confusing."
"The original ad, in the view of customers, was the clearest," Rosenberg said.
Citing commercial sensitive information, Rosenberg refused to reveal how many Dial High Club subscribers the company has, but claims thousands have signed up to the package and that no complaints at all have been registered by Virgin Mobile. Nor has the ACCC presented any information about customers that have complained, Rosenberg said.
The ACCC is seeking court orders including; declarations that Virgin Mobile has breached the relevant provisions of the Trade Practices Act; injunctions requiring Virgin to supply full information in future advertising; corrective advertisements to be published; affected customers to return mobile phones without incurring termination fees; and costs.
-We do approve of the role the ACCC plays but we would never, ever engage in deceptive practices," Rosenberg said.
"We don't think it needs to go to court...it would be a waste of taxpayers' money and not really in the best interest of the consumers."
"What is in the best interest of consumers is to agree in a way to present our unique offer," he said. -We hope they will be reasonable too in that process and look outside the square."
“We do approve of the role the ACCC plays but we would never, ever engage in deceptive practices”
I would call Virgin Mobile ignoring me when I sent back their SIM card by registered mail and asked repeatedly to have my details removed from their system, then continuing to charge my credit card until my bank stopped them "deceptive practices".