Kayo Penalised For Misleading Subscription Offer
Kayo Sports has paid a $12,600 fine after the ACCC issued an infringement notice for allegedly misleading consumers about their eligibility for a subscription offer.
Kayo supplies a sports streaming service which enables to stream a range of sports live and on-demand and was launched in Australian on November 26, 2018.
From March 14 to April 3 2019, Kayo Sports promoted its Basic Subscription Package to Telstra customers on its website for the price of “2 months for $5”.
According to the ACCC, the offer was false or misleading and in breach of the Australian Consumer Law.
“We were concerned that Kayo’s website did not adequately disclose the offer was only available to Telstra customers who had not previously used Kayo,” said Delia Richard, ACCC deputy chair.
“The eligibility requirement appeared in small print on Kayo’s website and was significantly less prominent than the headline offer.”
“Under the Australian Consumer Law, businesses must ensure that qualifications or restrictions on any deal or promotion are made clear to customers. This means they must be prominent and not hidden in the fine print.”
Some Telstra customers, who had used Kayo prior, took up the offer and were charged $25, instead of $2.50 for the first month.