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Telecom And Commerce Commission Settlement

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Fuseworks Media
Telecom And Commerce Commission Settlement

Telecom is pleased to have reached a settlement with the Commerce Commission in relation to advertising for its historical Broadband at Dial-Up prices campaign.

"Telecom is pleased to have settled this matter - the third and final of three historic issues we have been working with the Commission to resolve," said Telecom Group General Counsel, Tristan Gilbertson.

Under the settlement, Telecom and the Commerce Commission agree that Telecom's Broadband at Dial-Up prices campaign breached section 11 of the Fair Trading Act (FTA) in that, between 6 April and 27 May 2008, Telecom's television advertising did not adequately disclose that there would be a minimum 12 month contract period and, between 6 April and 30 June 2008, Telecom's print and television advertising did not adequately disclose that the Basic Broadband plan had a data cap of 200 MB per month, with an excess data charge of 2 cents per MB.

"Our drive to resolve these historic issues is all about acknowledging mistakes where they have been made in the past and putting things right. Equally, as we move into the future, we need to ensure we learn from the past. To this end, we have been on a concerted drive to improve our compliance processes, to keep future issues to an absolute minimum."

Mr Gilbertson noted that Telecom has used the lessons learned from this and previous FTA matters, as well as the Commission's recent FTA DVD, to develop new updated training for Telecom staff. Targeted refresher training for Telecom's marketing teams has already been undertaken.

Mr Gilbertson added that, as part of the settlement, Telecom is crediting 1306 customers who have not already been credited. The credits will be applied to customer accounts tomorrow. A letter apologising for Telecom's mistake and advising those customers of the credits will follow in the next few days.

Telecom will also be making a payment of $75,000 to Consumer New Zealand to assist with establishing a price comparison website across all providers.

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