Telstra has, in a media release and in briefings, to some parts of the media regarding the Say G'day product stated that before the Australian Competition and Consumer Commission took today's court action, it had eradicated any potential consumer detriment from its behaviour. It said this made it unnecessary for the ACCC to take the action.
"Telstra claims that today's court consent orders were similar to the undertakings it had offered the ACCC before going to court", ACCC Chairman, Professor Allan Fels, said today.
"In this media release and in briefings, Telstra has failed to disclose the following:
- when the ACCC initially raised issues with Telstra two months ago it denied any liability and did not offer to take prompt action despite what, in the ACCC's view, was a clear breach of the law
- somewhat later, Telstra then offered some remedial action but this was only in response to the ACCC stating it would initiate court action. What was offered, however, was significantly less than what the ACCC sought and obtained in today's hearing before the Federal Court
- only at the last minute, last night, Telstra agreed to all the steps the ACCC had sought. However, the ACCC had already launched proceedings in court and it considered that it was more appropriate at that stage to proceed with the case
"Telstra's comments on this and previous consumer protection cases are based on the seeming view that when it breaches the law, it is never appropriate for the ACCC to take action in court.
"When ordinary citizens break the law, normally they face court action. When there is a series of breaches of the law they certainly do.
"Telstra should not be treated on the basis of a different standard where if it breaches the law the matter should be resolved by a private deal, particularly when there has been a history of breaches of the consumer law".
*See earlier Telstra 'FREECALL' Misled, Deceived Consumers MR 283/02 15 11 02