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Law Of ACCC V TPG’s Advertising

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Question:

Discuss about the Law Of ACCC v TPG’s Advertising.
 
 

Answer:

In the case the ACCC alleged that TPG’s advertising have contravened the statutory provisions. The Australian Law aims to protect the goods and service , irrespective of whether how they advertises through television and radio but they must ensure that they comply with the law. Advertising and selling expenses are evolved. The practice which is illegal had to be stopped. The rules and practice of advertising are as follows:

  1. The company shall not engage in products that are likely to be deceptive or misleading
  2. The company shall not make any false or misleading statements (Miller and Roger LeRoy 2015)

The company has contravened the Australian Consumer Law under section 18

The company has prohibited the deceptive conduct and it is unlawful for the business and thus the company makes a claim which is false and misleading on their goods and services. A statement which is given by the company to the others is misrepresented. This include the statements make in television or on the websites or in the contracts

Case Study: ACCC V TPG

  • TPG had run the advertising campaign.
  • In much of the print which is smaller the advertisements which stated in customer was required” to bundle the service with a landline rental for an additional $30 per month (for a minimum of 6 months) and pay an overall minimum of $509.89 including a set-up fee and deposit”.
  • The High Court had found that those advertisements which were to convey a representation and that the internet service was available without bundling and, at least in the first phase of the advertisement campaign, a representation that there would be no set-up fee or deposit (Allen, William T., and Reinier Kraakman).
  • On the question of the target audience, the High Court decided that the “dominant message” was important.
  • A pecuniary penalty of $2 million was imposed on TPG for the breach of s 48.
  • The overall advertisement had an impact on the consumers and it was misleading
 

References    

Miller, Roger LeRoy. Business Law Today, Standard: Text & Summarized Cases. Nelson Education, 2015.

Allen, William T., and Reinier Kraakman. Commentaries and cases on the law of business organization. Wolters Kluwer law & business, 2016.

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