ACCC smacks down telco Medion for misrepresenting "unlimited" claims

Telco Medion has provided a court enforceable undertaking to the ACCC after misrepresenting its Aldi Mobile Unlimited Pack, which had significant usage restrictions.

Medion, which took over providing service for Aldi Mobile after ISPOne entered voluntary administration in August last year, was found to be misrepresenting its 30-day "Unlimited Pack" available through the Aldi Mobile website, the ACCC has found.

Specifically, between 14 September 2013 and 15 November 2013, Medion claimed that the pack provided 30 days worth of unlimited voice calls, voicemail, SMS and MMS. However, in its Acceptable Use Policy, Medion stated that daily, three-day and 30-day limits applied to voice calls, SMS and MMS.

"The ACCC is concerned that some telco businesses are making sweeping offers of unlimited services while concealing the true extent of the service in the fine print," ACCC Deputy Chair Delia Rickard said. "The ACCC is particularly concerned about the use of 'unlimited', or similar terms, in telecommunications industry advertising when significant restrictions apply. Consumer protection in the telecommunications sector remains a priority for the ACCC in 2014. This undertaking serves as a notice that our scrutiny of industry advertising and sales practices continues."

Medion has admitted that it misled consumers, changed the name of the pack to "$35 Plan" and removed the term "unlimited" from all descriptions and advertising. In addition, it has provided an undertaking to refrain from engaging in similar conduct for a period of three years, publish a corrective notice on the Aldi Mobile website for a period of 30 days, and implement a competition and consumer law compliance program for a period of two years.