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NEWS / BUSINESS NEWS
Sensis Ready For War Over Being Free

By Branko Miletic | Sunday | 17/08/2008

Following our story last week on the impending legal stoush between Telstra subsidiary Sensis and online auction upstart OZtion, it seems the term ?free? is all up to the interpretation.

In a statement to channelnews.com.au, Sensis said: "?Sensis is concerned by business' use of the word ?free' without any qualification in their advertising materials, as it has the potential to mislead customers about the true costs associated with a product or service".

Sensis also noted that it was in "its customers' best interests and the online auction industry's as a whole, for businesses to fully disclose terms and conditions associated with their advertising promotions".

Furthermore, adding fuel to the legal fire, Sensis insinuated that its competitors were telling tall tales with their use, or rather, as it claims, their misuse of the free word.

But insofar OZtion are concerned, the whole thing is a spat over nothing.  "The accusations are baseless," said OZtion MD Phil Druce.

However Sensis begs to differ. "Our competitors whose advertising materials do not explain or refer to any further information regarding the 'free offer', and adding that,  "We take clear communications of our promotions to customers very seriously. In addition, you should be aware all customers who choose to place an ad via the online site are clearly informed about the "success fee" before they are able to submit their ad for publication", according to a company spokesperson.

Online auctions generated some $US48.5 billion in sales in 2006, representing about one quarter of all online sales and represent traditional retail's biggest competition online, according to research from Forrester Research?and although there are no up-to-date and reliable figures of what the market is currently worth in Australia, it seems someone over at Sensis thinks its worth enough to go into a prolonged legal war over semantics.

 


 

 

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