Optus takes Vodafone to court over misleading advertising

14 Dec 2010

Australian telecom operator Optus is taking Vodafone to court over misleading advertising the  ''Infinite'' mobile phone plans it launched last month.

According to Australi's second largest telco Optus, Vodafone has not clearly spelt out qualifications to the plans in its advertising.

The company launched the mobile phone plans on 16 November saying they offered a viable alternative to running a fixed line as they offered unlimited calls to mobile and fixed phones for $45 a month.

According to Vodafone Australia (VHA), the plans allow "Infinite calls to anyone you want at home or on their mobile within Australia. Now there's no need to have two separate phones for home & mobile".

A statement of claim against Vodafone for misleading advertising was lodged by Optus today, for which a directions hearing would be due tomorrow morning.

''Optus alleges the campaign does not adequately inform consumers of the various qualifications to the Infinite plans,'' a spokesman said yesterday. ''We are seeking an interim injunction preventing Vodafone Hutchison Australia from running the campaign in its current form until such time as a final hearing can take place.''

Vodafone said it was confident of its advertising being clear and straightforward. According to its spokesperson Vodafone disagreed with Optus's claims against Vodafone and its Infinite plans and would defend those plans keeping protecting customer value in mind.

Optus, however, is involved in two cases with the Australian Competition and Consumer Commission for misleading advertising. In one instance, the ACCC said the telco advertised plans as ''unlimited'' when were not.

In the other case the ACCC said Optus failed to adequately disclose constraints on customers' download limits, even as a judge ordered that Optus display corrective posters in all shopfronts.