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

Starts At 60 Makes Two Executive Appointments
  • Media

Starts At 60 Makes Two Executive Appointments

Mature-age media platform Starts at 60 has welcomed two new leaders to its executive team as it looks to scale up and broaden its commercialisation. Amena Reza (pictured above, right) moves into the role of chief operating officer. She was formerly the managing director of ML Design, and is a chartered accountant and a non-executive […]

HubSpot Creates ‘Marketing Hub Starter’ For Small Businesses
  • Marketing
  • Technology

HubSpot Creates ‘Marketing Hub Starter’ For Small Businesses

Marketing software player HubSpot has launched Marketing Hub Starter, a new software offering that aims to give growing teams the tools they need to start marketing right. This new tier of HubSpot’s platform is designed with small businesses in mind, consolidating the capabilities of existing disparate marketing tools into one platform and offering an affordable […]

Market Research Industry Cracks Down On Shonky Behaviour With New Digital Platform
  • Marketing

Market Research Industry Cracks Down On Shonky Behaviour With New Digital Platform

The Association of Market and Social Research Organisations (AMSRO) has launched a digital platform to highlight fake or illegitimate research activities to the public. ‘Phish of the Day’ enables AMSRO members, as well as the general public, to report any scams or non-genuine market and social research activities to the association. These might include telemarketing […]

Pooled Energy Appoints Magnum & Co And The Wired Agency
  • Advertising
  • Marketing

Pooled Energy Appoints Magnum & Co And The Wired Agency

Swimming pool electricity retailer Pooled Energy has appointed Magnum & Co and sister agency The Wired Agency to its roster, following a competitive pitch. Magnum & Co will handle Pooled Energy’s social media and PR, while The Wired Agency has been appointed to manage the company’s search and display advertising. Both agencies will collaborate with […]

Masculinity Roasted In Clever New Ad
  • Advertising
  • Campaigns

Masculinity Roasted In Clever New Ad

Think masculinity means drinking a case without chundering? Well, rediscover it (& possibly yourself) with this top ad.

by B&T Magazine

B&T Magazine
WPP AUNZ Partners With Career Trackers Indigenous Internship Program
  • Advertising

WPP AUNZ Partners With Career Trackers Indigenous Internship Program

Advertising and marketing network WPP AUNZ has joined the Career Trackers Indigenous Internship Program as part of its commitment to a diverse workforce, and the creation of opportunities that inspire excellence. As part of the program, WPP AUNZ has welcomed its first three interns: Abi-Leigh Dillon (WPP AUNZ), Amy Mccutcheon (MediaCom) and Jacinta Evans (Ogilvy), […]

Taboo Goes On A Hiring Spree
  • Advertising

Taboo Goes On A Hiring Spree

Taboo has gone a hiring spree. And when it comes to sprees, that's far better than a shooting one or a farting one.

M&C Saatchi Group’s 1440 Shuts Up Shop
  • Marketing

M&C Saatchi Group’s 1440 Shuts Up Shop

Sadly, M&C Saatchi's 1440 is no more. And chances of it being reborn as 1550 not looking much chop either.

by B&T Magazine

B&T Magazine
Luke Kelly Becomes A Partner At HBT
  • Advertising
  • Marketing
  • Technology

Luke Kelly Becomes A Partner At HBT

B&T's not sure what's with that twirly thing in the press photo, suffice to say a vortex to an alternate dimension?

Women In Media Profile: Alison Michalk
  • Media

Women In Media Profile: Alison Michalk

If B&T's Women in Media profiles were an animal they would be a gazelle or lioness, or even a lioness eating a gazelle.

by B&T Magazine

B&T Magazine
Grant Broadcasters Makes Several Changes To Senior Executive Team
  • Media

Grant Broadcasters Makes Several Changes To Senior Executive Team

Independent media company Grant Broadcasters has announced a number of changes to its executive ranks. Grant Cameron will move up to become non-executive chairman for the company, and Alison Cameron (pictured above) – currently the chief operating officer – will assume the CEO role. Dugald Cameron remains responsible for the family’s investment portfolio and is […]