FOXTEL Management Pty Ltd has provided the Australian Competition and Consumer Commission with a court enforceable undertaking following allegations that FOXTEL breached the Australian Consumer Law with a free television offer.
FOXTEL represented that customers who subscribed to a 12 month plan between 12 February 2012 and 5 April 2012 would receive a free 22 inch neoniQ television within ten days of installation of their FOXTEL service. The offer was advertised in a nationwide campaign, which included television advertisements and direct marketing.
A significant number of customers who signed up to the offer did not receive the televisions within ten days of installation and the ACCC believes that FOXTEL did not take sufficient steps to ensure that it could deliver on this promise. FOXTEL also advertised that the offer was limited to 1,500 free televisions but signed up nearly 8,400 subscribers to the promotion.
“It is important for businesses to have a reasonable basis for any promises made to consumers otherwise they risk breaching the Australian Consumer Law,” ACCC Chairman Rod Sims said.
“Businesses must review claims made in advertisements to ensure they remain accurate at all times.”
FOXTEL has undertaken to give a subscription credit, to current FOXTEL customers who:
- subscribed to the free television offer between 12 February 2012 and 5 April 2012
- were not sent a free television within ten business days after installation, and
- still had a FOXTEL subscription as at 1 May 2013.
FOXTEL will use its best endeavours to ensure that by 15 July 2013 these customers will receive one month's subscription credit, based on their subscription fee on 15 May 2013.
FOXTEL has also undertaken to refrain from engaging in similar conduct in the future and to appoint a qualified compliance professional to conduct a review of any areas of its business where there is a risk of breaching competition and consumer laws.