Two phone card sellers were caught promoting false information with regards to value, price and benefits of their phone cards, reported the Australian Competition and Consumer Commission (ACCC).

Perth’s Federal Court stated that Prepaid Services (a subsidiary of Optus) and Boost were in contravention of the Trade Practices Act 1974. Both companies had promised that certain phone cards would provide consumers with a specific amount of call time, when it was not the case; and that no fees, other than timed call charge would apply, when in fact other fees were charged. Further claims with regards to specified rate per minute were also questioned.

The court declared the information misleading, ordered corrective notices to be published and ACCC costs to be paid.

Graeme Samuel, ACCC chairman said, The ACCC will continue to play a prominent role in ensuring that all companies accept their responsibilities to provide accurate and easily understood information to consumers.