Ruth signed up to a $49 cap plan believing it would be the maximum amount she would have to pay each month. This wasn’t the case and Ruth ended up with unexpectedly high bills.
Saying what they mean and meaning what they say
Under the TCP Code, telecommunications providers (telcos) must not use terms in their advertising that could lead to customers being misled. For example, ‘cap’ may not be used for new offers unless it is a hard cap that cannot be exceeded.
Most print advertisements that mention ‘included value’ for mobile plans will include standard charges for a two-minute national call, a standard SMS and using 1MB of data.
When Ruth goes shopping for her next plan, she will receive a ‘Critical Information Summary’ setting out key terms and conditions, including standard charge information.
Telcos must send customers like Ruth expenditure and usage notifications for data, voice and SMS, along with information about additional charges alerts when 100 per cent of a monthly allowance is exceeded.