ACCC investigates Crazy John's for alleged false advertising

 

Only two months after the death of its founding member John Ilhan, mobile phone chain Crazy John has found itself in hot water, with the ACCC over misleading advertising.

The Australian Competition and Consumer Commission (ACCC) has instituted proceedings in the Federal Court against the retailer for alleged contraventions of the Trade Practices Act 1974 in relation to the promotion of some of its mobile phone plans.

The ACCC alleges that Mobileworld Operating Pty Ltd (trading as Crazy John's) engaged in misleading or deceptive conduct by advertising handsets on its Crazy Phone Plans as 'FREE' or for '$0', when in fact consumers are required to pay for the handsets through higher call rates than those available on comparable plans which do not include a handset.

The ACCC alleges that these representations contravene sections 52 and 53 of the TPA. The ACCC is seeking a range of remedies including declarations regarding the alleged contravening conduct and corrective advertising.

The government body said proceedings utilise the Fast Track List in the Victorian registry of the Federal Court, which is intended to streamline court procedures in matters of this nature, thereby reducing the time and cost of litigation.

A scheduling conference has been set down for 29 February.

Crazy John's is yet to respond.

ACCC investigates Crazy John's for alleged false advertising
 
 
 
Top Stories
Matching databases to Linux distros
Reviewed: OS-repository DBMSs, MariaDB vs MySQL.
 
Coalition's NBN cost-benefit study finds in favour of MTM
FTTP costs too much, would take too long.
 
Who'd have picked a BlackBerry for the Internet of Things?
[Blog] BlackBerry has a more secure future in the physical world.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest articles on BIT Latest Articles from BIT
Looking for storage? Seagate has five new small business NAS devices
Aug 22, 2014
Seagate has announced a new portfolio of Networked Attached Storage (NAS) solutions specifically ...
Run a small business in western Sydney?
Aug 15, 2014
This event might be of interest if you're looking to meet other people with a similar interest ...
Buying a tablet? Microsoft's Surface Pro 3 goes on sale this month
Aug 8, 2014
Microsoft has announced its Surface Pro 3 will go on sale in Australia on 28 August from ...
Apple's top MacBook Pro with Retina is now cheaper
Aug 1, 2014
Apple has updated its MacBook Pro range with faster processors and new pricing, including ...
Pass on carbon tax savings, warns ACCC
Jul 24, 2014
The ACCC is warning businesses that supply "regulated goods" to pass on any cost savings ...
Latest Comments
Polls
Which is the most prevalent cyber attack method your organisation faces?




   |   View results
Phishing and social engineering
  71%
 
Advanced persistent threats
  2%
 
Unpatched or unsupported software vulnerabilities
  11%
 
Denial of service attacks
  6%
 
Insider threats
  10%
TOTAL VOTES: 732

Vote