Telecom faces court over 'Go Large' ads

Telecom and its subsidiary Xtra are to be prosecuted for allegedly misleading the public with its Go Large broadband promotion.

In 2006 Telecom and Xtra launched nationwide advertising of its new broadband plan "Go Large", in which it made a number of representations, including "Xtra Broadband is about to be unleashed!", "unlimited data usage and all the internet you can handle" and "maximum speed internet".

The Commerce Commission launched an investigation following complaints from Xtra customers.

It has now decided to prosecute Telecom, alleging it breached the Fair Trading Act by misleading the public about the services and making false or misleading representations about the performance of the Go Large plan.

Telecom spokesman Nick Brown says the prosecution relates to "historical advertising" for the Go Large service, and that the promotion hasn't run for some time.

Brown adds that Telecom doesn't have the detail of the charges yet, but has co-operated with the Commission in its ongoing investigation into Go Large.

He says that Telecom works to ensure its advertising is accurate. It also aims to work within the ISP Industry Guidelines, as released by the Commerce Commission recently, that provide guidance for service promotions.

Companies found guilty of breaching the Act may be fined up to $200,000.

- Stuff.co.nz, NZPA