Telstra Corporation Limited - s.87B undertaking

Telstra's 'Say G'day' cards and vouchers are used to provide a pre-paid long distance telephony service. Telstra falsely represented on the cards, vouchers, website and advertising materials that the 1800 access number was a "FREECALL^TM number" and was "a free call from fixed phones". In fact, calls to national and international destinations cost an additional 53c/min. on top of the advertised rates. In some cases the additional 53c/min. charge was almost 10 times the promoted overseas rate.

In conjunction with consenting to the Federal Court making declarations that Telstra breached sections 52 and 53(e) of the Trade Practices Act 1974, and injunctions permanently restraining further conduct, Telstra also provided this section 87B undertaking to the Commission.

Telstra has undertaken to:

• place a recorded voice announcement to the start of all calls made using the 1800 number advising of the additional per minute costs associated with the 1800 number;
• waive the additional 53c/min. 1800 charge until 15 January 2003 (or 28 February at the latest);
• revise the 'Say G'day' materials and distribute new stock to retailers by 28 February 2003;
• report to the Commission on steps taken to revise and distribute new stock, by 15 March 2003;
• engage an independent assessor approved by the Commission to review Telstra's trade practices compliance training for retail marketing staff, by 30 January 2003.