Business Law: Interney Pty Ltd. Essay

Question:

Discuss aabout the Business Law for Interney Pty Ltd.

Answer:

1: In the year 2010, TPG was held liable for defective advertising and for the offer it made to the public at large. According to the advertisement campaign of TPG, they offered an ADSL2+ service at 29.99 dollars. This was an internet service and according to the advertisement, this seemed to be the final offer that was inclusive of the set up and telephone charges. However, later it was discovered that other charges were also included as part of the ADSL2+ service and it was for this reason the advertisement was considered as defective (Corones 2014).
2: The constitutional sections that ACCC alleged that TPG violated are:
  • Section 53 (1) (c) of the “Trade Practices Act”
  • Section 53 of the “Trade Practices Act”
  • Section 52 of the “Trade Practices Act”

Section 52 of the TPA contains that, an organization or a corporation shall not engage in any act or activity that is deceptive or misleading or has the likelihood of being misleading or deceptive in nature (Corones 2014).

Section 53 of the TPA contains that, an organization or a corporation should not make any false or deceptive representation of any supply or service of the goods along with the warranties, rights and remedies of the service or goods.

3: Bundling: this was an allegation of Primary Judge on TPG as they bundled the price of many of other charges on the ADSL2+ service. Since the advertisement was for target audiences who were first time users of the internet services, hence, the ACCC held that the message should be clear through the process of advertisement.

  • The Set up Fee: the Primary Judge of the case held that the dominant message of the advertisement was that, the cost should be inclusive of all the charges this included the setup charge and other charges. However, later the organization imposed other charges as well.
  • Single Price: The Primary Judge was of the view that, initially it was told that the price shall be inclusive of all other charges however, later the organization included all other charges apart from dollars 29.99.
4: The Full Court and the Primary Judge were different only on their approach that they had based on the dominant message of the advertisement. The Full Court relied on the decision of the case “Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd” (John and Willekes 2014).
5: The High Court concluded that the approach that was taken by the Full Court was not appropriate based on the following two points:

Firstly, it cannot be expected out of the target audience to pay so much close attention to the advertisement.

Secondly, the advertisements were of such a nature that it gave a tendency to lead into error.

6: Firstly, in the case of Puxu, the advertisement was not meant for the target audience.

  • Secondly, the Full Court failed to realize that the advertisements were misleading in nature (John and Willekes 2014).
7: Firstly, the advertisement should focus on attracting the possible buyers of the advertisement.
Secondly, that the messages contained in the advertisement should be unambiguous and clear.
Thirdly, ensuring that the advertisements should not be misleading in nature.

References:

Corones, S., 2014. Australian Competition and Consumer Commission v. TPG Interney Pty Ltd., Forrest v. Australian Securities and Investments Commission: Misleading Conduct Arising from Public Statements: Establishing the Knowledge Base of the Target Audience. Melb. UL Rev., 38, p.281.

John, R. and Willekes, A., 2014. Consumer law: Deceptive advertising: Is it a question of audience?.

Reidy, C., 2015. Competition at basement level.

White, C., 2014. An introduction to the Bail Act 2013. Judicial Officers Bulletin, 26(1), p.1.

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