What might be 'prominent' in print may not be the case when an advertisement appears in a different medium.
iiNet seems to be finding this out the hard way. In 2013, the ACCC issued an infringement notice for $102,000 over an advertisement on the back of a bus that the ACCC believed failed to prominently state the total minimum price payable for iiNet's Naked DSL Service.
Photo: ACCC
On 3 March 2015, the ACCC announced that iiNet has paid a further two penalties totalling $204,000 following publication of advertisements for their Naked DSL service on billboards and trams and it is the same issue again.
ACCC Chairman Rod Sims provided some important guidance in the ACCC release: 'Prominence means that the total minimum price can be easily seen and strikes the attention of the consumer... it is important to consider the context in which the advertisement appears – for example if the advertisement is on a moving vehicle, where consumers may only be able to see the advertisement momentarily'.
It is important that the advertising medium is considered and legal sign-off on advertisements is not given without context. The relative size of the part price compared to the total price is important as well as the colour of the font, the actual size of the font in the context of the distance consumers would view it from and other factors.
Advertising what can be a complex pricing structure on a billboard is not without some risk that consumers will not grasp the full details but iiNet has tipped the ACCC's scales in this case.
Photo: ACCC
Photo: ACCC
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