Aldi gets wrist slap over 'unlimited' plans

Aldi gets wrist slap over 'unlimited' plans

Summary: Aldi Mobile has been forced to rename one of its 'unlimited' prepaid mobile plans after the consumer watchdog accused the company of misleading customers.

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Telstra mobile reseller Aldi Mobile has renamed its AU$35 prepaid mobile plan after the Australian Competition and Consumer Commission (ACCC) accused the company of potentially misleading customers over the offering in the plan.

The "Unlimited Pack" plan that was advertised on Aldi Mobile's website between September and November last year said it provided customers with unlimited voice calls, voicemail, SMS, and MMS.

The commission told the telco, known as Medion, that stating that these offers are "unlimited" while there are restrictions contained in the company's acceptable use policy would likely mislead consumers.

"The ACCC is concerned that some telco businesses are making sweeping offers of unlimited services while concealing the true extent of the service in the fine print," ACCC deputy chair Delia Rickard said in a statement.

Rickard said that the ACCC is "particularly concerned" with telcos using "unlimited" in advertising when restrictions do apply.

Medion has admitted to the ACCC that it was likely in contravention of Australian Consumer Law, and has provided a court-enforceable undertaking to the ACCC that it will not act in a similar manner in the future.

The "Unlimited Pack" plan is now named the Aldi Mobile $35 Plan, with a clear outline on Aldi's website that it is subject to the company's acceptable use policy, as well as the limits on the number of SMS, voice calls, and MMS per month.

Last year, Aldi Mobile managed to salvage its reseller offering after its former reseller ISPOne was entered into administration through an agreement directly with ISPOne's wholesale provider, Telstra. Kogan, which also offered "unlimited" plans, was less successful, and ultimately discontinued the Kogan Mobile service.

Topics: Telcos, Telstra, Australia

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Armed with a degree in Computer Science and a Masters in Journalism, Josh keeps a close eye on the telecommunications industry, the National Broadband Network, and all the goings on in government IT.

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