Jul 31, 2009

ACCC alleges Optus misled the public, with prepaid call cards

by Alan Thornhill

Optus is facing court action over its prepaid phone cards.

These are sold by a wholly  Optus owned company called Prepaid Services Ltd.

The Australian Competition and Consumer Commission is alleging that this company had claimed that:-

  • Certain cards would provide customers with a specified amount of call time when this is not so
  • That there would be no other fees other than times call charges  when other fees were charged
  • That particular call rates would be charged, even though they were unlikely to be achieved.

The ACCC will argue its case before the Federal Court in Perth.

It is making similar charges against another telephone company, B0ost Tel.

The latest action follows other cases the ACCC has taken over pre-paid phone cards, in relation to Tel.Pacific and Cardcall Pty. Ltd.

In the latest case, the commission is alleging that both Prepaid and Boost engaged in misleading conduct and made certain false or misleading claims.

Preliminary proceedings in the case are scheduled to start in Perth on September 4.


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Profile

Alan ThornhillAlan Thornhill is a parliamentary press gallery journalist. Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.

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