ACCC slams Optus over supersonic deer campaign

by Marketing ON 9 September 2010

The Australian Competition and Consumer Commission (ACCC) has accused Optus of including misleading information into one of its recent advertising campaigns.

According to ACCC, Optus breached the Trade Practices Act 1974 by engaging in misleading and deceptive conduct and making false representations for broadband plans in its ‘Think Bigger’ and ‘Supersonic’ promotional campaigns.

The ACCC alleges that Optus did not clearly disclose certain conditions of its broadband plans in its advertising. Consumers were not informed that once they exceeded the peak data allowance in their specific package, their internet connection would be slowed.

The ACCC is seeking court orders, including declarations by Optus, injunctions, civil penalties, corrective advertising and costs.

Optus lawyers are scheduled appear in court on 16 September 2010.

eBay loses French keyword case

by Marketing ON 17 February 2010

Online auctioning giant eBay has been found guilty by a French court for misleading consumers by using misspelt versions of luxury brands as search engine keywords to redirect users to its own links.

The company was ordered by a tribunal to pay 200,000 Euros ($306,000) and additional legal costs to fashion brand Louis Vuitton.

eBay was accused by the tribunal that it had “harmed the reputation of the Louis Vuitton brand” through its actions, and paying search engines Google and Yahoo! to make sure that the misspelt keywords would lead consumers back to its site.

“We are extremely disappointed by this decision. We recognise the facts but we think the sanction is disproportionate,” said Yohan Ruso, head of eBay France.

“This issue is being used by certain rights owners as an excuse to retain total control of what people can buy, where they can buy it from and how much they have to pay,” eBay said in a statement.

Red Rooster accused of fishy marketing

by Marketing ON 12 February 2010

Fast food chain Red Rooster has come under fire for its Barramundi Burger marketing misleading consumers because it doesn’t mention that its fish comes from South-East Asia.

An Australia Food News report has suggested that the chain deliberately omits the fact its Barramundi is a Thai version, known in the South-East Asian market as Asian Seabass.

Concerns have been raised by the Australian Barramundi Farmers Association (ABFA) that the fish is promoted as being local, when in fact it comes from overseas where quality standards are not as stringent.

The chain’s TVC copy says, “Barramundi. The most prized of all fish. Sought after by the finest restaurants and the keenest fisherman. Of course, the secret is knowing the best spot”, which executive officer of the ABFA, Graham Dalton, believes hides from customers purchasing the product that it’s not Australian.

“Our Barramundi meets the highest environmental and regulatory standards anywhere, our products shows zero on (chemical) residues,” said Dalton.

The ABFA has been petitioning the federal and state governments to support a requirement that all seafood dishes are labelled with the country of origin of the produce. To date, only the Northern Territory government has taken on the initiative.

Red Rooster marketing representatives were unavailable for comment but the chain has previously maintained that the South-East Asian Barramundi is of a high quality despite the claims.