Commission files charges against Trustpower

Issued 19 August 2016
Release No. 16

Commission files charges against Trustpower over misleading broadband offer

The Commerce Commission has filed charges in the Auckland District Court against Trustpower Limited over its marketing and sale of its bundled electricity and unlimited data broadband offer.

The 7 charges laid under the Fair Trading Act (FTA) relate to Trustpower’s television, online and billboard advertising between March and July 2015 promoting a $49 a month for 12 months unlimited data broadband plan, under the campaign theme: “Good things happen when power and broadband get together”.

In fact, the $49 price was available only to customers who signed up for power and broadband at the same address on a 24 month contract term. For the second 12 months the cost of broadband would be up to $79 a month and if a customer wished to cancel the contract at any time during the 24 month period they would incur exit fees. The second year price was only disclosed in smaller print ‘terms and conditions’ at the foot of the advertising.

Trustpower has co-operated with the Commission’s investigation and has indicated that it intends to plead guilty to the charges.

As this case is before the Court, the Commission cannot comment any further at this time.

ends

© Scoop Media