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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags broadbandinternettrustpower

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments