iiNet has become the first company listed on the ASX to snag a penalty for misleading advertisements, The West Australian reports.
The internet service provider popular with investors now has to pay a $102,000 fine after The Australian Competition and Consumer Commission (ACCC) found that its naked DSL advertisement failed to specify the minimum price of the product.
Though the minimum price of the product was displayed on the advertisement – which was placed on metropolitan buses in Sydney earlier this year – it was not prominent enough, according to the ACCC, and didn't show the total quantifiable amount for the service.
While iiNet's naked DSL product has a minimum monthly price of $59.95 each month for 24 months, it also has a connection fee of $79.95.
"If the total minimum price is not prominent or cannot be easily seen, businesses run the risk of being in breach of the Australian Consumer Law," ACCC chairman Rod Sims said.
iiNet has run up 27.7% to $5.85 in the year-to-date, with most analysts polled on Bloomberg rating the stock a "buy".