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ARTICLE · 21 DECEMBER 2013

Clarity in advertising a must, says ACCC

Companies must focus on clarity when advertising goods and services, and must ensure that ads truthfully display prices.

AustraliaMedia, Telecoms, IT, Entertainment

On 12 December 2013 the High Court of Australia held TPG Internet Pty Ltd had engaged in misleading and deceptive conduct when it ran certain advertisements between 2010 and 2011.1

TPG's advertisements for ADSL2+ "prominently displayed" a price for the service of $29.99 per month, while qualifying the offer 'much less prominently' with conditions that more than doubled the overall price.2 The Australian Competition and Consumer Commission (ACCC) was initially successful in pursuing TPG for misleading and deceptive conduct when the case went to the Federal Court of Australia, however it was overturned when TPG appealed to the Full Court of the Federal Court of Australia.

The High Court held that the initial decision of the Federal Court was correct. While the Full Court of the Federal Court noted that 'many persons will only absorb the general thrust' of an advertisement,3 the High Court took the view that it did not give proper consideration to the importance of

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