NBN satellite telco Activ8me has landed in hot water with the ACCC for the second time in 2018, this time for allegedly making false or misleading representations in its advertising.
The consumer watchdog accused Activ8me of breaching Australian Consumer Law over claims about the speed, data limits and costs of the services it offers customers.
As a result, the ACCC has commended proceedings in the Federal Court against Activ8me, seeking declarations, injunctions, pecuniary penalties, a corrective notice, consumer redress, a compliance program and costs.
According to the ACCC, Activ8me told customers they could access internet speeds up to 100Mbps on a $59.95 per month plan with no setup fee, when in actuality, that plan only offers speeds up to 12/1Mbps and a $99.95 setup fee for customers that don't sign up to a 12-month plan.
Activ8me also allegedly told customers they would receive unlimited data even though Activ8me could suspend internet access or charge more for data it deemed "unreasonable".
The ACCC said the false or misleading claims occurred between June and October this year through direct mail advertisements and online banners advertising its Opticomm fibre-to-the-premises packages.
“This is the second time this year that the ACCC has taken enforcement action against Activ8me for engaging in conduct that we allege is misleading, after we issued an infringement notice for false or misleading claims in March," ACCC deputy chair Delia Rickard said.
“Our decision to take court proceedings this time shows how seriously the ACCC takes Activ8me’s further conduct.”
Activ8me provoked the ire of the ACCC in March, paying a $12,600 penalty for allegedly making claims that the consumer watchdog had named it the "#1 Sky Muster provider". The ACCC had actually indicated that Activ8me had the largest satellite services in operation, not an endorsement of Activ8me over any other telco.
Activ8me has been contacted for comment.