TV breach prompts advertising review

By PETER GRIFFIN

Communications company TelstraClear has reviewed its advertising after being hit with its second fine for misleading advertising this year.

An Auckland District Court appearance and guilty plea earlier this week resulted in a $3000 fine plus costs being imposed on the telco, which was pursued by the Commerce Commission after a complaint by a member of the public about TelstraClear TV adverts.

The upheld complaint related to TelstraClear's "Chat n' Surf" which offers 30 hours of free internet access per month, if a minimum of $30 a month was spent on toll calls.

The problem was that 53,000 of TelstraClear's customers were not able to take advantage of it and that the small print at the end of the ads that ran last year did not point this out clearly enough.

TelstraClear spokesman Matthew Bolland said the company faced a recurring problem in its advertising in that it was trying to appeal to customers nationwide but did not yet have a national network, meaning pockets of customers were often left out. The disclaimer on the TV adverts had been difficult to read, he added.

"Against an orange background it was not as clear as it should have been. The last thing we want to do is annoy customers."

Staff had reviewed advertising policies and undertaken sessions on the Fair Trading Act and how to avoid breaching it.

Commerce Commission acting chairman Paula Rebstock said the telecoms industry as a whole needed close scrutiny.