Australia MVNOs fined for advertising breaches - Mobile World Live

Australia MVNOs fined for advertising breaches

15 OCT 2020

The Australian competition regulator fined two MVNOs for falsely claiming their data plans were unlimited in advertisements on social media.

Amaysim Australia and Lycamobile paid penalties of AUD126,000 ($89,544) and AUD12,600 respectively after the Australian Competition and Consumer Commission (ACCC) issued each with an infringement notice for alleged false or misleading representations about their data plans.

The ACCC stated operator advertisements for unlimited data plans breached consumer law because they reverted to capped after the first few months.

Chair Rod Sims said the industry had “previously put on notice that their advertisements must be clear and transparent”.

“The amount of data included in a mobile phone plan is an important factor for many consumers in choosing a plan, and it is important that consumers can readily understand what they are signing up to.”

Amaysim uses Optus’ 4G network: ACCC estimated it led the SIM-only market in 2019 with a share of 5.4 per cent. Lycamobile operates on Telstra’s network and had a 2.2 per cent share.

In September 2018, ACCC threatened legal action against the country’s three major mobile operators over their advertising of unlimited tariffs.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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