Sharechat Logo

Telecom to be prosecuted over Go Large promotion

Friday 1st February 2008

Text too small?
The Commerce Commission has decided to prosecute Telecom and its subsidiary Xtra for alleged breaches of the Fair Trading Act, in relation to the Go Large broadband promotion.

In 2006 Telecom and Xtra undertook extensive nationwide advertising of a new broadband plan called "Go Large", in which it made a number of representations, including '"Xtra Broadband is about to be unleashed!"; "unlimited data usage and all the internet you can handle" and "maximum speed internet".

In December 2006 the Commission launched an investigation following complaints from Xtra customers.

The Commission has decided to prosecute Telecom and Xtra for alleged breaches of the Fair Trading Act in that the companies allegedly engaged in conduct that was liable to mislead the public as to the characteristics of services and made false or misleading representations about the performance characteristics of the Go Large plan.

There will be no further comment as the matter is now before the courts.

Background Fair Trading Act Breaches of the Fair Trading Act may result in prosecution in court. Companies found guilty of breaching provisions of the Fair Trading Act may be fined up to $200,000 and individuals up to $60,000. Only the courts can decide if a representation has breached the Fair Trading Act.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Telecom Corporation of New Zealand (TEL)
Telecom in drive to latch on to growing data usage with 4G mobile launch next month
Telecom lines up to buy 700MHz spectrum to extend reach of 4G network
Telecom backs setting copper prices until 2020, warns against getting too far away from input cost
Telecom puts $60M price tag on new Auckland data centre, Hawkins, AECOM win build
Telecom ends jobs purge, looks for ‘more sophisticated’ ways to save money
Telecom FY earnings fall to bottom of guidance range, sees unchanged dividend in 2014
Telecom takes spat with Vodafone to regulator after dropping court action
Telecom unbundling key to regulator's copper conundrum
Telecom lures customers to faster services in EPL deal