Customers of national mobile phone service provider Dodo Australia Pty Ltd who signed up to its 'FREE $29.90 Mobility Cap Plan', 'FREE Fuel' and 'Cash Offer' 24 month mobile cap plan offers will get refunds and have the monthly cost of their plans reduced after intervention by the Australian Competition and Consumer Commission.
Between October 2008 and March 2009 Dodo advertised the Free Offer Plans on its website at www.dodo.com.au and at various times between October and December 2008 on television.
The ACCC was concerned consumers were likely to have been misled or deceived by the advertisements which represented consumers would receive either of an Asus Eee PC, a fuel card or a cash payment (to their nominated account) for free or at no cost when they signed up to any one of the Free Offer Plans.
An investigation by the ACCC revealed Dodo offered other cheaper mobile cap plans (that did not include the free goods or cash) that were comparable (in included value and services) with the Free Offer Plans. In some cases the monthly fee for those comparable mobile cap plans was up to $30 per month lower.
After being fully informed of the ACCC's concerns, Dodo promptly ceased to publish the advertisements of concern and undertook to take action to ensure its affected customers will receive the goods and cash for free, as advertised. This includes paying refunds and lowering the monthly fees for the Free Offer Plans.
Dodo has given a court enforceable undertaking to the ACCC which will be available on the ACCC's website.
"The ACCC has previously warned the telecommunications industry that practices prohibited by the Trade Practices Act including misleading advertising are in the ACCC's sights," ACCC Chairman, Mr Graeme Samuel, said.
"The telecommunications industry has had sufficient time to implement the necessary changes to address those practices. Those elements of the telecommunications industry that wish to test the ACCC's resolve to reform the industry's errant practices are on notice."
Mr Samuel's speech Making Phones Fair – Australian telecommunications and poor consumer practice is available on the ACCC's website.