Two companies have been fined $375,000 for misleading advertising when selling mobile phone content and games, including a Justin Bieber ringtone, Doodle Jump and Space Invaders.
Premium content company Global One indulged in misleading conduct last year when it offered Justin Bieber's One Time ringtone to customers who sent a text message, Justice Bennett of the Federal Court in New South Wales found on Wednesday.
While purchasers were led to believe they were purchasing a one-off product for a one-off fee, they were in fact signing up for an ongoing service with recurring subscription fees.
Another company called 6G advertised entry to a mobile quiz, a mobile Space Invaders game and a mobile Doodle Jump game, between March and July 2010, which also appeared to be one-off costs when in fact they were ongoing subscription costs in breach of the Trade Practices Act.
The court noted the advertisements were aired during television programs with young audiences.
"The Justin Bieber advertisement is, in my view, the most egregious of the advertisements," Justice Bennett said in her preliminary judgment.
"Clearly it was of appeal to under 18 year olds, including under 15 year olds."
Global One was fined $150,000 and 6G was fined $75,000 for each of the three advertisements. They must also pay the costs of the Australian Competition and Consumer Commission, which instigated action in October last year.
The court ordered the companies to stop advertising the products and implement compliance programs.
Outgoing chairman Graeme Samuel said this was the ACCC's ninth success against mobile premium services.
Source: The Sydney Morning Herald
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