Foxtel’s free television offer breached consumer laws says ACCC

The Australian Competition and Consumer Commission has accepted an undertaking from Foxtel regarding its future conduct in advertising promotional offers after a free television offer to new subscribers failed to deliver.

The offer promised 1,500 people who signed onto 12 month subscriptions a free 22 inch neoniQ LCD television, a set-top box and the first month of Foxtel’s Get Started pack within 10 days of subscribing.

Foxtel had said the offer would be limited to 1,500 people, but around 8,400 signed up for the deal and received free televisions, the ACCC said.

A total of 3,264 who signed up for the free television offer did not receive the package within 10 days.

The offer was advertised on television, door-to-door drop cards, at Foxtel’s kiosk at the Royal Easter Show.

The ACCC found FOXTEL did not take sufficient steps to ensure it could deliver the promise, and contravened consumer law. “It is important for businesses to have a reasonable basis for any promises made to consumers otherwise they risk breaching the Australian Consumer Law,” ACCC Chairman Rod Sims said in an ACCC press release.

“Businesses must review claims made in advertisements to ensure they remain accurate at all times.”

In the undertaking, FOXTEL has said it will give a subscription credit to customers who subscribed to the free television offer between February 12 and April 5, were not sent a free television within 10 days of installation and still had a Foxtel subscription as of May 1.

Foxtel has said it will use it’s best endeavours to ensure customers receive the subscription credit by July 16. It is also looking to appoint a qualified compliance professional to conduct a review of any areas of business where there is a risk of breaching consumer laws, the undertaking said.

A Foxtel spokesman said: “Foxtel undertook a promotion as part of a marketing campaign that involved providing new subscribers with a television set. Unfortunately there were supply chain issues which meant that the sets could not be delivered within a reasonable timeframe.

“Foxtel regrets any inconvenience caused by this fact and has agreed appropriate compensation with the ACCC.”