Telecom pleaded guilty today to 15 representative charges and 2 specific charges of breaching section 11 of the Fair Trading Act 1986 in relation to its advertising of its Go Large broadband plan and ‘unleashed’ broadband plans in late 2006.
“Telecom accepts and regrets that some of this advertising at the time was misleading. We failed to adequately disclose various qualifications to our Go Large and Unleashed plans and we apologise for this,” said Ralph Brayham, Director of Home Services.
“Following complaints regarding the speeds experienced by some customers after the launch of ‘unleashed’, Telecom moved quickly to try to identify the problems.”
In February 2007 Telecom closed the Go Large plan to new customers and
proactively provided credits to affected customers. While customers were
given the option to move to another plan, at the time only a small number
in fact chose to move off the Go Large plan.
“In the three years following the Go Large closure we have made significant changes across our broadband portfolio and have learnt a number of lessons from the Go Large campaign.
“We have tens of thousands of customers enjoying a new plan with no monthly data cap, called Big Time – and with that plan we have been clear in communicating the traffic management that applies to it,” Mr Brayham said.
In addition to the credits applied in 2006 and 2007, Telecom is crediting those customers who were on the Go Large plan between October 2006 and December 2006 and who have not already received a credit. Any customer due
a credit will be contacted and credited shortly.