ACCC Cracks Down On “Unacceptable” NBN Advertising By Telcos

ACCC Cracks Down On “Unacceptable” NBN Advertising By Telcos
SHARE
THIS



The competition watchdog has had a gutful of the “poor” advertising campaigns by internet providers to spruik National Broadband Network (NBN) service speeds, tackling the problem with an unusual approach.

The Australian Competition & Consumer Commission (ACCC) has published an industry guidance which seeks to move retailers from advertising their services based on the maximum internet speeds that may be delivered during off-peak periods, to the speeds consumers can expect to achieve during the busy evening periods between 7pm and 11pm.

ACCC chairman Rod Sims said currently around 30 per cent of NBN customers have been sold low-speed plans, with many not realising their internet speeds may not be any better – and in some cases worse – than existing ADSL services.

“Many other NBN customers, while on higher speed services, experience lower than expected speeds during busy periods due to under provisioning of capacity by their retail service provider,” he said.

The ACCC has created standard labels it would like the industry to adopt in order to give consumers better information about what sort of speeds they can expect during the evenings and better allow consumers to compare plans.

“With this guidance, if you buy a ‘basic evening speed’ plan, you should generally not expect speeds much different to your pre-NBN experience,” Sims explained.

“If you buy ‘standard evening speed’ or higher plans, you should expect certain minimum speeds during busy periods.

“Retailers should be very clear with customers about the typical speeds they can expect during busy evening periods. It is not acceptable to advertise an ‘up to’ speed claim, as this can give the false impression that the speed advertised is achievable at most times, including during the busy period.”

“In some cases, it is not clear from the advertisements what sorts of internet speeds consumers can expect at all.”

The guidance stipulates that if consumers are experiencing problems with their network connections or other faults that affect their service, they will be resolved quickly or be offered a refund or cancellation of their contract.

“Under the ACCC’s new guidance, retailers should work quickly to identify faults and resolve customer complaints about the speed or performance of their retail services,” Sims said.

“In circumstances where a retailer is unable to provide timely resolution of a speed problem, the retailer should offer refunds and alternative products or the option to leave their contract.”

Sims noted that providing such detailed guidance to industry is an unusual step for the ACCC.

“We judge, however, that such a step is necessary because the current advertising around NBN products is poor, which is unacceptable in the context of a forced migration to the NBN,” he said.

“While the guidance is voluntary, it provides a strong benchmark against which the ACCC, and more importantly the community, will judge the advertising of retailers. The ACCC will also be closely monitoring retailer compliance with the Australian Consumer Law.”

Latest News

Diversity Case Study Series: OMD
  • Advertising
  • Marketing
  • Media

Diversity Case Study Series: OMD

One need only look at the Cadbury Favourites chocolate selection to know it has nought to do with industry diversity.

by B&T Magazine

B&T Magazine
Nielsen, Ispsos & The Readership Works Evolve emma Readership Data Offering
  • Media

Nielsen, Ispsos & The Readership Works Evolve emma Readership Data Offering

The Readership Works (TRW), Nielsen and Ipsos have announced a strategic collaboration with Australia’s news media industry to deliver a ‘single source of truth’ in measuring, understanding and reporting Australian consumers’ increasingly fragmented engagement with brands and content. This evolution sees Nielsen now leading the fusion process that brings together accredited readership data, emma (Enhanced […]

Ten Brings Ellen DeGeneres’ Game Show Down Under To Replace Family Feud
  • Media

Ten Brings Ellen DeGeneres’ Game Show Down Under To Replace Family Feud

Network Ten has announced it has commissioned a new family entertainment series which will premiere on Ten and the WIN Network later this year. Game of Games is based on the US show of the same name, which only launched in January this year. The US show is produced by Warner Horizon Unscripted & Alternative […]

m2m Drives Away With $51m Hyundai Media Account
  • Media

m2m Drives Away With $51m Hyundai Media Account

Media agency m2m has been awarded the Hyundai media planning and buying account. The agency, under Omnicom Media group, was up against incumbent Initiative and Havas, with Hyundai’s Innocean Australia handling the pitch process. Speaking to B&T, a Hyundai spokesperson said, “We’d like to thank Initiative for their sterling service over the last 10 years – […]

by B&T Magazine

B&T Magazine
Adland Execs To Be Locked Up
  • Media

Adland Execs To Be Locked Up

Continuing adland's fascination with prison when it comes to charitable causes comes this latest trip to the slammer.

Australian Directors’ Guild Announces Mentorship Winners
  • Campaigns
  • Media

Australian Directors’ Guild Announces Mentorship Winners

Now in its second year, the Australian Directors’ Guild’s (ADG) Commercial & Content Directing Mentorship program announced its next round of eight mentoree recipients. The winners were announced at a special event held last night at FINCH, Sydney and attended by members of the screen and advertising industries. Acclaimed director, and ADG President, Samantha Lang, […]

Eyeota Deep Dives Into Australian Automotive Purchase Behaviour
  • Media

Eyeota Deep Dives Into Australian Automotive Purchase Behaviour

Eyeota, the global leader in audience data, has today released its latest results on automotive purchase intentions in Australia. The results provide a deep dive into what motivates the buyer and segments those into six different personas.

APN Outdoor Joins The AANA
  • Marketing
  • Media

APN Outdoor Joins The AANA

AANA's annual Christmas dinner and dance got a teensy bit more crowded following this announcement this morning.

QMS Introduces ‘The Lonsdale’ To Melbourne
  • Advertising
  • Media

QMS Introduces ‘The Lonsdale’ To Melbourne

Digital outdoor media company QMS Media has turned on a new premium landmark digital billboard situated in the heart of Melbourne’s CBD. Delivering a commanding presence at the major intersection of Lonsdale and Russell Streets, ‘The Lonsdale’ offers extended dwell times to both vehicle and pedestrian traffic, impacting more than 2.2 million contacts per month. […]

Portrait of a woman looking through out the blinds. Office worker looking through window blinds
  • Opinion

The Lurking Brand Threats Facing CMOs

Treading on gardening rakes and possible alien abduction notable omissions from this CMO threats piece.

Opinion

by B&T Magazine

B&T Magazine
Women In Media Profile: Susannah George
  • Media

Women In Media Profile: Susannah George

B&T is delighted to profile Urbanlist supremo Susannah George who, we understand, is not related to George Brandis.

by B&T Magazine

B&T Magazine
Ikon Lands Avis Budget Group Account
  • Advertising
  • Marketing
  • Media

Ikon Lands Avis Budget Group Account

B&T chooses and recommends Avis and John Karandonis shoes. Hang on, that was the end of Sale Of The Century.

by B&T Magazine

B&T Magazine
Principals Appoints New Creative Director For Melbourne
  • Marketing

Principals Appoints New Creative Director For Melbourne

Branding design agency Principals has announced the appointment of Pip Ireland as its Melbourne creative director. Ireland, who has been freelancing with the agency for the past six months, has previously held roles at Designworks in New Zealand and Melbourne as well as Moon Communications in Sydney. Principals executive creative director Simon Wright said: “We’ve […]

Pureprofile Unveils Next-Level Audience Segmentation Offering With RDA Research
  • Media
  • Technology

Pureprofile Unveils Next-Level Audience Segmentation Offering With RDA Research

Global media and technology company Pureprofile has partnered with RDA Research to enable further audience segmentation across its audience profiles. RDA Research’s geoTribes is a unique classification system that rivals traditional geodemographic approaches by grouping consumers into fifteen ‘tribes’ based on their life stage and socio-economic status. Clients are then able to better understand consumer […]

WPP AUNZ Launches ‘The Bond & Associates’
  • Advertising
  • Marketing
  • Media

WPP AUNZ Launches ‘The Bond & Associates’

Advertising conglomerate WPP AUNZ has launched an innovative new stakeholder and community engagement practice called The Bond & Associates. Led by newly-appointed national director and former Newgate Australia adviser Gail Morgan (pictured above), The Bond & Associates will provide a complete solution for both government and private sector clients involved in complex public projects and […]

MYOB Partners With Network Ten’s Shark Tank
  • Marketing
  • Media

MYOB Partners With Network Ten’s Shark Tank

Accounting software provider MYOB has announced it has signed as a major sponsor of Shark Tank on Network Ten, which returns to screens tonight. In its fourth season, Shark Tank continues its format of having budding business owners and entrepreneurs pitch their ideas to the ‘sharks’, who have invested $21 million of their own money […]

Aussies Back ABC Over Budget Cuts
  • Media

Aussies Back ABC Over Budget Cuts

A new poll has found a resounding 70% of Aussies oppose cuts to the ABC despite only 7% actually bothering to watch.

Meerkats Test-Drive Dream Safari Holiday In New Comparethemarket.com.au TVC
  • Advertising
  • Campaigns

Meerkats Test-Drive Dream Safari Holiday In New Comparethemarket.com.au TVC

Leading comparison service comparethemarket.com.au has launched its latest TVC nationwide to announce its dream Safari holiday competition. The TVC – ‘Safari’ – which sees the meerkats back in their ancestral home ‘selflessly’ test-driving the amazing Safari trip that is up for grabs for one lucky winner. Narrowly avoiding an elephant trampling their picnic, an inquisitive […]

Women In Media Profile: Lauren Nicole
  • Media

Women In Media Profile: Lauren Nicole

We'd like to say B&T provides a delightful high tea for all Women In Media interviewees, but it'd be a scandalous lie.

by B&T Magazine

B&T Magazine