Trustpower charged over broadband ads

The Commerce Commission has filed charges in the Auckland District Court against Trustpower over the marketing and sale of its bundled electricity and unlimited data broadband offer.

The charges, under the Fair Trading Act, relate to Trustpower’s television, online and billboard advertising between March and July 2015 promoting a $49 a month for 12 months unlimited data broadband plan, under the campaign theme: “Good things happen when power and broadband get together”.

The Commission says the $49 price was available only to customers who signed up for power and broadband at the same address on a 24 month contract and the cost for the second 12 months could be up to $79 a month. The second year price was only disclosed in smaller print ‘terms and conditions’ at the foot of the advertising. Also, if a customer wished to cancel the contract at any time during the 24 month period they would incur exit fees.

The Commission said Trustpower had co-operated the investigation and had indicated it intends to plead guilty to the charges.

Copyright © 2016 IDG Communications, Inc.

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