B Digital Ltd - s.87B undertaking

B Digital Limited has provided a section 87B undertaking to the ACCC in respect of its advertising of its 'Two Free Phones plus $200 Free Calls' mobile phone package. B Digital admits that its advertising for the package may have contravened the Act by:

• stating that the two phones and $200 of calls were free when, before they could receive the phones and calls, consumers had to commit to two $11 per month call plans for 24 months for a total minimum cost of $528; and
• only providing cost details per single plan/single phone/$100 call package and failing to specify that the total (minimum) cash price of the two plan/two phone/$200 call package over the 24 month contract period was $528.

The company has undertaken not to engage in similar conduct in future, publish corrective notices in newspapers nationally, review and improve compliance program and maintain and have that compliance program audited for a period of two years.