Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Has TPG Telecom Ltd (ASX:TPM) Been Misleading Its Subscribers?

Making finance headlines today is telecom giant TPG Telecom Ltd (ASX: TPM), the name behind the growing telecom brand and owner of iiNet.

According to a market release, TPG is facing the Australian Competition and Consumer Commission (ACCC) in Federal Court over misleading advertising relating to a $20 ‘prepayment’.

According to the ACCC, TPG made customers pay a $20 fee to cover the costs that might be incurred but are not necessarily included in their plan. The fee is non-refundable and the ACCC says TPG kept at least $10 when the customer cancelled.

“A reasonable consumer would expect that this $20 payment would be refunded if it was not used, but in fact it is non-refundable,” ACCC Deputy Chair Delia Rickard said. “It is unacceptable that TPG only disclose this forfeiture in fine print.”

Making matters more interesting, Mr Rickard says TPG would top-up the prepayment fee via a direct debit when a customer’s prepaid balance fell below $10.

“Since March 2013, the ACCC estimates that TPG is likely to have retained millions of dollars paid by consumers in prepayments that were forfeited,” Rickard said.

The ACCC is seeking penalties and compensation for TPG customers.

What Now?

According to its Annual General Meeting (AGM) presentation today, TPG has 1.9 million broadband subscribers and made around $397 million in profit last year. It’s also planning to merge with Vodafone Australia, owned by Hutchison Telecommunications Ltd (ASX: HTA), as part of a $15 billion deal.

Therefore, even if the ACCC is successful it seems it might be ‘business as usual’ for TPG in 2019 and beyond.

Is it time to buy TPG shares? Read this first…

[ls_content_block id=”14945″ para=”paragraphs”]

Before jumping into either of these companies, I strongly encourage you to check this out…

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report — or get it emailed to you — for FREE by CLICKING HERE NOW or the button below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content