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Austar slapped for overlooking costs in contracts

The ACCC finds Austar was offering contracts with free channels to Indigenous communities but keeping costs out of the fine print.

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Austar has given an enforceable undertaking to the Australian Competition and Consumer Commission, that it will provide clear and prominent explanations of the costs of its subscription television packages, following an investigation into sales practices.

Austar’s conduct was investigated following door-to-door sales to Indigenous residents of Beswick and Barunga, remote communities in the Northern Territory.

The regional Pay TV provider offered standard ‘Starter Pack’ contracts that came with extra channels (such as movies or sport) for free or at a discounted rate for a short introductory period but did not reflect that the customer would be charged for the extra channels unless they actively opted out of the channels.

“The ACCC is concerned the conduct affected some of the most disadvantaged consumers in Australia,” ACCC deputy chair Peter Kell said. “The ACCC’s investigation also revealed this behaviour occurred nationwide.”

As a result of the findings Austar will now calculate the minimum price on the assumption customers will not vary their subscription after the date of the contract by opting to remove those channels previously offered for free.

It must will also retain recordings of all telephone conversations with customers in which the cost of the package is discussed, and the contract is entered into, for the duration of the minimum term of the contract.

9 Responses

  1. As an employee of austar – we read out the terms and conditions. Why is it when customers choose to ignore the boring sales declaration which clearly tells them of the fine print that We get in trouble.

    Its not our fault customers have brains the size of homer simpsons left finger nail.

  2. Yeah, had a door to door salesmen come round. Enjoying free sport while the RWC is on but probably won’t keep it once its all over….but will get it again when the super 15 comes around.

    i was on the austar facebook page other other day and that lloyd duff guy is serious about his horror. He has over 50 threads on the discussion board about Horror Channels.

    what a funny guy

  5. I’ve had to put a fluro yellow A4 notice on my glass door instructing Austar sales people to not disturb. Last one tried to tell me I didn’t have to pay a cent, but still wanted credit card details. After more than 10 mins. and fifty no’s to him his parting words were “your loss mate”.
    A complaint to Austar brought the curious request for our customer number. No apology.
    Never had Austar, don’t want it. Never will have it, from what I read about them and experience from their door-knockers

  6. Not surprised. Austar are a bunch of idiots. When i first connected a couple of years back i had a similar thing but i was never told i had to personally remove these options at the end of the first month. I ended up being charged for all these extra channels i didn’t want. Austar gave me an apology and a $5 credit on my next bill. As if $5 was going to cover $50 worth of charges.

  7. From personal experience of door-to-door people selling Foxtel, this is pretty much standard practice. In fact, judging by some of the internet and phone ads I see even now, I’d say it’s standard practice throughout the telecommunications sector.

    Sometime around 2004, cable was being laid in our street (at night) and we had a knock on our door after 8pm from someone offering us a discount if we signed up to Foxtel “while they were in the area”. We were told that we’d be able to get all the FTA channels and “the internet”, and that if we chose not to continue with Foxtel we could cancel after 3 months but would still receive the FTA channels.

    I initially bought this BS and signed up as the first 3 months were really cheap. Anyway, did some more checking and cancelled the next day. Neighbours and friends in other areas have had similar experiences.

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