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The Consumers' Institute says Xtra's broadband advertising is misleading.
The institute says the Go Large plan promises "unlimited internet usage at maximum download speeds" but the reality was that downloading was subject to traffic management and the conditions of Xtra's Fair Use Policy.
The institute has complained to the Commerce Commission and the Advertising Standards Authority.
Institute spokesman David Russell said the policy stated that if subscribers used more than 700MB of data during the peak hours of 4pm to midnight in a single day, then Xtra would get in touch with advice on how to reduce usage.
He said consumers should not have to reduce their usage on an unlimited usage plan - unless it was not unlimited.
Downloading films or music was common usage, not excessive usage, and Xtra's traffic management meant the advertising was misleading.
A spokeswoman for Xtra said the company took great care to word the advertising and terms around the new broadband plan accurately. It would be reviewing them.
- NZPA
