MEBOURNE, Australia—The Australian Competition and Consumer Commission (ACCC) has instituted federal court proceedings against mobile operator Virgin Mobile Australia for allegedly “engaging in false, misleading and deceptive conduct in advertising a number of mobile-phone packages nationally during the period October 2001 to March 2002.”
But Virgin Mobile hit back, labeling the ACCC’s action a “publicity stunt” and a waste of taxpayers’ money.
More specifically, the ACCC alleges Virgin Mobile above-the-line and online advertising for the Dial High Club mobile phone plus calls packages failed to publish full cash prices and inform customers of the likely termination costs of their contracts. Virgin Mobile’s Nokia 8310 mobile phone Dial High Club package was valued at more than A$1,000 (US$540.33).
A spokesman for Virgin Mobile said it is seeking an open dialogue with the ACCC. A directions hearing is scheduled for 29 May in Perth’s Federal Court in Western Australia.
