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

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments