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Friday, June 17, 2011

Telco fined for misleading Bieber ringtone ads - Sydney Morning Herald

<div readability="77"> <p>Two companies have been fined $375,000 for misleading advertising when selling mobile phone content and games, including a Justin Bieber ringtone, <em>Doodle Jump</em> and <em>Space Invaders</em>.</p> <p>Premium content company Global One indulged in misleading conduct last year when it offered Justin Bieber's <em>One Time</em> ringtone to customers who sent a text message, Justice Bennett of the Federal Court in New South Wales found on Wednesday.</p> <p>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.</p> <p>&#13; <small>Advertisement: Story continues below</small>&#13; <noscript>&#13; &#13; </noscript>&#13; </p> <p>Another company called 6G advertised entry to a mobile quiz, a mobile <em>Space Invaders</em> game and a mobile <em>Doodle Jump</em> 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.</p> <p>The court noted the advertisements were aired during television programs with young audiences.</p> <p>"The Justin Bieber advertisement is, in my view, the most egregious of the advertisements," Justice Bennett said in her preliminary judgment.</p> <p>"Clearly it was of appeal to under 18 year olds, including under 15 year olds."</p> <p>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.</p> <p>The court ordered the companies to stop advertising the products and implement compliance programs.</p> <p>Outgoing chairman Graeme Samuel said this was the ACCC's ninth success against mobile premium services.</p> <p><em>lbattersby@theage.com.au</em></p> </div>

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