The Full Federal Court has dismissed an appeal by two Australian providers of mobile premium services, Global One Mobile Entertainment Ltd and 6G Pty Ltd, against an earlier court decision that certain advertisements were misleading or likely to mislead consumers about continuing premium rate mobile phone subscriptions.
The advertisements, which represented that a consumer could purchase certain mobile premium services at a one-off cost when the consumer was in fact requesting access to an ongoing premium rate mobile subscription, were broadcast on both free-to-air and pay TV and at a time that would have attracted younger viewers.
The Full Court found that the misleading or deceptive conduct arising out of the publication of the advertisements was not dispelled by the text message sent to responding consumers which set out the opt-in procedure for consumers to accept both the one-off fee and subscription fee. The Federal Court strongly supported Justice Bennett’s findings of contraventions and penalties totalling $375,000.
For more information, please see the ACCC Media Release.