The Australian Competition and Consumer Commission has found Kayo ran misleading promotions for its sports streaming service earlier this year.
Mumbrella reports between March and April, Kayo pushed its basic subscription package to Telstra customers, saying they could have two months access’ for just $5.
“We were concerned that Kayo’s website did not adequately disclose the offer was only available to Telstra customers who had not previously used Kayo,” ACCC deputy chair Delia Rickard said.
“The eligibility requirement appeared in small print on Kayo’s website and was significantly less prominent than the headline offer.
“Under the Australian Consumer Law, businesses must ensure that qualifications or restrictions on any deal or promotion are made clear to consumers. This means they must be prominent and not hidden in the fine print.”
Kayo was issued a $12,600 penalty by the ACCC.
A Kayo spokesperson said in a statement, “We accept the ACCC’s decision to issue an infringement notice. While we believed the relevant eligibility conditions were clear in this case, we have noted the ACCC’s findings. We will always work to ensure we fully comply with Australian Consumer Law.”
Last month Kayo CEO Julian Ogrin said, “At Kayo, every single person is a customer service champion. I am, the content team is, our tech developers are – the customer is always the reason and the why for what we do.”