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Dodgy Dutch Multimedia Company Cops ACCC Wrath

By Branko Miletic | Thursday | 21/08/2008

The Australian Competition and Consumer Commission (ACCC) has instituted proceedings in the Federal Court against Dutch mobile entertainment company TMG Asia Pacific over what it says was false, misleading and deceptive conduct and a contravention of the Trade Practices Act 1974.


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The ACCC alleges that in three of its television advertisements for its 'Text and Win' mobile premium services, TMG failed to adequately disclose the costs and terms associated with the services and that this was likely to mislead consumers.
The three advertisements in question ? Cash Cup, Mac Air and Shell Game ? were run on pay and free to air television earlier this year and offered viewers a chance at winning a prize by texting TMG.

The ACCC says these advertisements failed to adequately disclose that to be eligible for the prize, that participating in the quiz also resulted in the consumer signing up to a subscription quiz at the cost of $5 each and that prizes could not be awarded to residents of the ACT, Victoria and Queensland.

The ACCC is seeking declarations from TMG that it engaged in false and misleading and deceptive conduct, an injunction restraining TMG from engaging in similar conduct in the future, corrective advertisements on television and an order that TMG implement a trade practices law compliance program.

TMG was established in the Netherlands in 2003 and is active in nearly 60 countries and has an office in Sydney to look after the Asia Pacific business.

The matter has been listed for a hearing on 17 September 2008 in the Federal Court, Sydney.

 

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