Menu
​Trustpower fined $390k after misleading 8,000 Kiwis over broadband offer

​Trustpower fined $390k after misleading 8,000 Kiwis over broadband offer

Trustpower pleads guilty to misleading New Zealanders over the price and terms of its bundled electricity and unlimited data broadband offer.

Trustpower Limited has been fined $390,000 in the Auckland District Court after pleading guilty to misleading New Zealanders over the price and terms of its bundled electricity and unlimited data broadband offer.

The Commerce Commission filed seven charges under the Fair Trading Act (FTA) last month relating to Trustpower’s television, online and billboard advertising between March and July 2015 promoting a $49 a month for 12 months unlimited data broadband plan, under the campaign theme: Good things happen when power and broadband get together.

During Trustpower’s marketing campaign approximately 8,000 new customers took up its Unlimited Broadband Offer.

The $49 price was available only to customers who signed up for power and broadband at the same address on a 24 month contract term.

For the second 12 months the cost of broadband would be up to $79 a month and if customers wished to cancel the contract at any time during the 24 month period they would incur an exit fee of $195.

Commerce Commission competition general manager, Antonia Horrocks, said Trustpower’s marketing misled consumers by promoting the $49 broadband price while keeping important terms hidden in small print.

“It’s vital businesses clearly disclose the price and any key conditions when marketing their products so consumers can properly assess the total cost of the service,” Horrocks said.

“An artificially low headline price that is subject to significant limits in the small print, including substantial term and exit fee requirements, is likely to be misleading and in breach of the Fair Trading Act.

“This type of advertising is of particular concern to the Commission as the misleading headline price can attract customers away from traders who advertise their prices clearly and fairly.”

In 2009 Trustpower was fined $17,000 in the Tauranga District Court for breaching the Fair Trading Act by misleading its customers about the nature of a power bill review service.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags internettrustpowerbroadband

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments