2degrees fined $325,000 for misleading customers over ‘free’ Aussie business roaming

2degrees pleaded guilty to five breaches of the Fair Trading Act in the Auckland District Court.

• 2degrees has been fined $325,000 for misleading claims about its “free” Aussie business roaming plans.
• Customers were charged $7 to $8 per day after 90 days, despite the “free” claim.
• 2degrees has removed the 90-day limit, refunded affected customers, and updated promotional material.

Telco 2degrees has been fined $325,000 after admitting it made misleading claims about its “free” Aussie business roaming plans.

The Commerce Commission took action last year after claims made by 2degrees in its advertising campaign between 2020 and 2023 created an impression that customers on mobile business plans would have the ability to roam year-round in Australia at no extra cost when that was not the case.

Instead, customers were charged $7 to $8 per day for roaming after only 90 days.

A spokesperson for 2degrees said the company accepts the decision of the court and has fully co-operated with the commission.

“It was certainly not our intention to mislead business customers and we remain proud of the impact of our Free Aussie Business Roaming benefit, which has saved our business customers close to $6 million in roaming charges since we launched the product in 2020.”

Commerce Commission deputy chairwoman Anne Callinan said the word ‘free’ is a powerful tool in marketing.

“Consumers should be able to rely on the truth and accuracy of advertising claims like these.

“Businesses need to consider the overall impression of headline claims. Key information about claims they’re making needs to be easy to find and not buried in the fine print.”

In many instances 2degrees did not include the 90-day qualifier, and when they did it wasn’t clear enough to correct the impression created by the headline claim, the commission said.

2degrees has taken steps to rectify the claims and compensate affected customers.

This includes removing the 90-day limit on free business roaming in Australia, refunding current and former customers who were charged for business roaming in Australia in excess of 90 days, and updating their promotional material.

2degrees pleaded guilty to five breaches of the Fair Trading Act in the Auckland District Court.