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Sydney-based telco SpinTel Pty Ltd has received a directive from the Australian Communications and Media Authority (ACMA) to comply with the Telecommunications Consumer Protection (TCP) Code after erroneously using the term “unlimited” in its advertising.
According to an ACMA investigation, SpinTel’s advertising for its SIM-only mobile plans did not include any information about any restrictions that might apply to the telecoms service.
However, such programs were designed so users’ accounts would be immediately suspended when their usage reached 20 times greater than the SpinTel average.
SpinTel specified the service cap in its “acceptable usage policy” but did not clarify it in any of its marketing materials.
More than 260 SpinTel customers had their service terminated in 2021 due to exceeding the acceptable usage policy’s service cap.
These consumers could accept incoming calls and make emergency calls for the rest of their billing month, but they could not place any other outgoing calls.
Read also: ACMA eyes SMS scams, misinformation in 2022-23 compliance priorities (commsroom.co)
The ACMA said in its findings, “The application of this policy may result in the suspension of customers that exceed the stated usage threshold for deemed commercial calls, and as a consequence, SpinTel’s SIM-Only Mobile Plans are not genuinely unlimited and not subject to exclusions.”
“Despite this, SpinTel’s Advertising Material for its SIM-Only Mobile Plans included the term ‘unlimited’ in an unqualified manner when referring to call usage.”
The ACMA launched the investigation after receiving a complaint from a client whose account had been suspended.
In its press release, the ACMA also noted the need for the consumers to be able to rely on advertising to clearly state any relevant terms, conditions, or limits so they may buy items that suit their needs.
It said the directive to comply emphasizes the significance of adhering to the TCP Code’s advertising regulations, notably when using the phrase “unlimited” correctly.
Since then, SpinTel has changed its procedures to stop automatically suspending users with high usage patterns.
The ACMA has several enforcement options available, including the ability to issue an infringement notice if SpinTel violates the advertising regulations once more.
You may also want to read: ACMA calls for revision of broadcasting regulations (commsroom.co)
Jaw de Guzman is the content producer for Comms Room, a knowledge platform and website aimed at assisting the communications industry and its professionals.
