THE competition regulator has fined Australia’s number two telco Optus $178,000 for its “Max Cap” advertising campaign.


The Australian Competition and Consumer Commission (ACCC) said the ads, which ran through July and August last year in print and online, gave the impression that customers would pay a maximum rate per month, when it was in fact the minimum cost per month.

“If you advertise a service as a ‘$49 Max Cap’ when $49 is the minimum that consumers have to pay, then you risk breaching the law by misleading consumers about the cost of the service,” acting ACCC chairman Peter Kell said in a statement today.

Mr Kell said the advertisements gave the impression the consumer could use their call credit to call anyone, when in fact only certain call types were included.

The ACCC said it issued 27 infringement notices, with each carrying a fine of $6,600, based on the number of advertisements published and the various representations made within them.

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Optus is a wholly owned subsidiary of Singapore Telecommunications Ltd (SingTel).

The stock closed up one cent at $2.39.

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