News Corp-Backed Website & NBN Provider Fined For Allegedly False & Misleading Ads

News Corp-Backed Website & NBN Provider Fined For Allegedly False & Misleading Ads
SHARE
THIS



The Australian Competition and Consumer Commission (ACCC) has fined two companies for allegedly false and misleading representations in its advertising and marketing material.

Revtech Media, the company behind group-discount website One Big Switch (which is part-owned by News Corp), has paid penalties of $25,200 after the ACCC issued two infringement notices for alleged false and misleading energy price representations.

Between July and November 2017, One Big Switch advertised a 27 per cent discount for consumers in south east Queensland who switched to Click Energy’s ‘Big Switch Up’ offer.

The ACCC alleged this representation was false or misleading because calculation of the 27 per cent discount was based on rates under the Big Switch Up offer which were higher than Click Energy’s ‘standing’ offer rates.

One Big Switch also advertised that consumers would save up to $372 a year if they switched to Click Energy.

The consumer watchdog alleged the advertised savings were false or misleading because they were based on a comparison between Click Energy’s discounted market offer and the undiscounted ‘standing’ offers of EnergyAustralia, Origin and AGL.

Representations made between July and November 2017 on the One Big Switch website

The ACCC also alleged that One Big Switch did not know what a particular customer was paying under their current plan with another retailer, and so did not have reasonable grounds to estimate the savings which could be achieved by switching.

ACCC chairman Rod Sims said the actual savings for some consumers were much less than the amount advertised by One Big Switch.

“We allege that as a result of these claims, consumers were misled into assuming they were getting bigger discounts and savings than they would actually receive,” he said.

Meanwhile, NBN provider MyRepublic has paid penalties totalling $25,200 following the ACCC issuing two infringement notices for alleged false or misleading representations about its service performance.

Between December 2017 and April 2018, MyRepublic marketed its NBN services using statements such as “up to nbnTM100 Speed Tier” and “nbn™50 Speed Tier” on its website.

The MyRepublic website contained fine print disclaimers that the ACCC considered were ineffective as they were not prominent and did not provide clear information.

MyRepublic ads

ACCC commissioner Sarah Court said: “We were concerned that MyRepublic’s use of the NBN speed tiers misled consumers to believe they would get broadband speeds of, or close to, 100Mbps and 50Mbps during all or almost all of the time, when that wasn’t the case.

“NBN speed tiers indicate the maximum performance of a broadband service, but a number of factors, including congestion during busy periods, affects the actual speeds consumers will experience.

“When choosing between broadband services, consumers need accurate information about the performance they should expect, particularly during busy periods.

“We’ve been very clear with broadband providers about this and reference to the NBN speed tiers alone is not sufficient.”

Please login with linkedin to comment

ACCC Australian Competition and Consumer Commission MyRepublic One Big Switch Revtech Media

Latest News

Michael Speakman Joins Esports Organisation ORDER As Head Of Commercial
  • Marketing
  • Technology

Michael Speakman Joins Esports Organisation ORDER As Head Of Commercial

Esports organisation ORDER has announced the appointment of  Michael Speakman as its new Head of Commercial. As part of ORDER’s expansion, Speakman will help navigate new commercial opportunities by offering a creative space for brands to connect, level up and deliver partnerships across the gaming ecosystem. ORDER continues to sustain its rapid expansion by appointing a […]

Hivestack Expands US Footprint With Clear Channel Outdoor Partnership
  • Media

Hivestack Expands US Footprint With Clear Channel Outdoor Partnership

Hivestack, the leading global programmatic digital out of home (DOOH) ad tech company today announced a partnership with Clear Channel Outdoor Americas (CCOA), the US based business of Clear Channel Outdoor Holdings: one of the world’s largest outdoor advertising companies. Through this new partnership, CCOA will offer advertisers a way to buy DOOH inventory programmatically […]

Samsung Announces Finalists For UNDSCVRD Tiktok Docu-Series
  • Campaigns
  • Technology

Samsung Announces Finalists For UNDSCVRD Tiktok Docu-Series

Samsung Electronics Australia has this week announced the lineup of five budding recording artists for its UNDSCVRD competition, a TikTok docu-style reality series aimed to bring the spotlight to the rising music talent in the country. The series, presented by Samsung Galaxy, brings together five musical talents from across the country who were hand-picked by […]

Indie Agency Kaimera Expands With New Hires
  • Marketing

Indie Agency Kaimera Expands With New Hires

Independent media agency Kaimera has recruited five new team members to manage its continued growth, following several new client wins including Britbox, Campos and Under Armour. Daniel Miller (pictured above) has joined from News Connect, where he was an associate programmatic trader, in the newly created role of platforms manager. In the role, he will […]

Nine’s Love Island Australia Gets Premiere Date
  • Media

Nine’s Love Island Australia Gets Premiere Date

The sexiest singles in the nation (according to Channel Nine, at least) are back on airwaves with Love Island Australia on Monday, October 4, at 9.00pm after The Block on Channel 9 and 9Now. Aussie sweetheart Sophie Monk will return to host (and play Cupid) alongside new addition, comedian Stephen Mullan a narrator, in the world-renowned reality TV […]

Yotpo Expands Down Under With  Multi-Year Shopify Partnership
  • Marketing

Yotpo Expands Down Under With Multi-Year Shopify Partnership

Yotpo is officially expanding into Australia, off the back of significant market growth with massive Aussie names, a landmark investment from Shopify and a plan to help local Aussie e-comm explode. Yotpo’s ANZ userbase includes names like Zoe Foster Blake’s $180M Go-To Skin Care,  e-commerce fashion queen Princess Polly, and billion-dollar streetwear brand Culture Kings, […]

New ideas and imagination Creativity and inspiration Technological innovation. Hand holding brain digital network and abstract science light bulb inside on networking connection on sky background.
  • Technology

Progress Unveils Sitefinity DX 14.0 Platform

Progress has today announced the availability of Progress Sitefinity DX 14.0. This agile, flexible and extensible platform allows organisations to create an ideal digital experience platform (DXP) tailored to their unique needs and objectives with new capabilities for low-code integration and chat-driven engagement, as well as enhanced headless content delivery. The digital world is transforming […]