Optus in court over 'deceptive' phone cards

The Australian Competition and Consumer Commission (ACCC) has initiated legal proceedings against Optus, accusing the Telco’s wholly owned subsidiary and another company of engaging in misleading and deceptive conduct over the sale of prepaid phone cards.

The proceedings in Perth’s Federal Court are against Prepaid Services and Boost Tel, which buys telecommunications services through Prepaid Servcies.

The watchdog alleges that the two phone card providers promised to give customers a specified amount of call time, charge no fees other than timed call charges and charge a rate per minute for calls regardless of the number and length of calls made – all of which were never honoured.

Under the Trade Practices Act 1974, the ACCC is seeking declarations that the conduct of Prepaid Services and Boost contravened the Act, injunctive relief, corrective advertising, community service orders and its costs of the proceeding.

The matter has been filed in the Federal Court's fast track list and is listed for a scheduling conference in Perth on September 14 2009.


Copyright © 2009 IDG Communications, Inc.

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