The ACCC has instituted proceedings against internet provider Australian Private Networks (which trades as Activ8me) in the Federal Court for allegedly making false or misleading representations when advertising its internet services.
The ACCC alleges that, between June and October this year, Activ8me breached the Australian Consumer Law when it made the false or misleading claims in three direct mail ads and five online banner ads marketing its Opticomm fibre-to-the-premises (FTTP) packages.
“Activ8me sent thousands of advertisements with allegedly false or misleading claims about the speed, data limits and costs of its internet services,” ACCC deputy chair Delia Rickard said.
The ACCC alleges that Activ8me made false and misleading representations when it told consumers they could access download speeds of up to 100 megabits per second for $59.95 a month with no set-up fee.
However, the $59.95 plan only offered speeds of 12/1 megabits per second and a set-up fee of $99.95 applied if the consumer did not sign up to a 12-month plan.
Activ8me also told consumers that they would receive unlimited data when in fact Activ8me could suspend access or charge more for data use it deemed ‘unreasonable’.
Rickard said this was the second time this year that the ACCC has taken enforcement action against Activ8me for engaging in conduct that its alleges is misleading, after issuing an infringement notice for false or misleading claims in March.
“Our decision to take court proceedings this time shows how seriously the ACCC takes Activ8me’s further conduct,” she said.