Optus 'unlimited' claims land it in court

The Australian Competition and Consumer Commission (ACCC) has instituted legal proceedings against Optus for wrongly advertising "unlimited" calls.

The commission has labelled some of Optus' advertising "misleading or deceptive", as the telco failed to inform consumers of the numerous limitations and restrictions attached to its recently advertised $70 prepaid "Turbo Max" plan.

The ACCC believed Optus' misuse of the word "unlimited" contravenes Section 52 of the Trade Practices Act 1974. Section 52 of the Act states; "A corporation shall not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive."

The proceedings also relate to other advertisements, including those for Optus' "unlimited" broadband plans, which offered incentives for customers who chose to bundle home phone, internet and mobile services together.

The ACCC is seeking an acknowledgement by Optus of its deceptive actions, as well as injunctions and costs.

The case will be held in Melbourne's Federal Court on 25 June 2010.