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
By
Lilia Guan
on Jan 17, 2008 2:47PM
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.
Got a news tip for our journalists? Share it with us anonymously here.
Partner Content
Promoted Content
How to choose business data storage
Promoted Content
IT’s control over digital infrastructure is slipping, reports The Economist Intelligence Unit
Promoted Content
AWS She Builds seeks to bridge the great IT gender gap
Promoted Content
Do you know where your data sleeps at night?
Sponsored Whitepapers
Understanding the next security control points: applications and workloads
Best security practices after rapid Digital Transformation
The CISO View 2021 Survey: Zero Trust and Privileged Access
How and why to backup your Office 365 tenant
ForgeRock for Australia’s Trusted Digital Identity Framework (TDIF)
