KEY POINTS:
Both of New Zealand's major phone companies have been rapped over the knuckles for advertisements determined as misleading by the Advertising Standards Complaints Board.
In two separate decisions released today, complaints against Telecom and Vodafone were upheld by the board, which determined both companies breached the truthful presentation rule of the advertising Code of Ethics.
The first complaint, against Telecom, related to a television commercial for the company's Freedom Plan, which offered a deal in which customers paid $10 a month to call between a Telecom home line and a designated Telecom 027 mobile number.
The voice-over on the advertisement said "you can call as much as you like".
However, the complainant noted small print on the screen added the qualifier "normal charges apply after 60 minutes".
This meant the offer was not unlimited, the complainant said, making the voice-over "misleading and inappropriate".
Telecom argued the terms and conditions of the plan were clearly identifiable in the advertisement.
However, the board ruled the condition "significantly diminished the offer", and the advertisement was likely to mislead a consumer.
"An unwary caller could receive a significant bill for calls that exceeded the 60 minute limit."
A second complaint dealt with an advertisement promoting the Vodafone "Bestmate" plan, which showed people talking to a miniature best friend held like a mobile phone, and told customers they could call, video or text their best mate "all you like for $6 per month".
The problem was nowhere in the advertisement did it tell customers the offer only applied to pre-pay phones, the complainant said.
Vodafone argued viewers were directed to the company's website, or free-call number for further details, where they were advised the offer was for pre-pay only.
The board found the advertisement misleading as the condition should have been clearly specified in the advertisement and said it was not sufficient for the consumer to have to seek the information through other channels.
- NZPA
