Apple CEO Tim Cook speaks during an Apple event announcing the iPhone 6 and the Apple Watch at the Flint Center in Cupertino
Apple CEO Tim Cook speaks during an Apple event announcing the iPhone 6 and the Apple Watch at the Flint Center in Cupertino, California, September 9, 2014. REUTERS/Stephen Lam

Telstra, one of the largest telecommunications companies of Australia has been fined AU$102,000 for misleading iPhone 6 ads. The Australian Competition and Consumer Commission (ACCC) has asked Telstra to pay fine for a full page Telstra iPhone 6 advertisement that was published in Sept 27 edition of The Age newspaper.

On the advertisement, the Telstra iPhone 6 was displayed with a price tag of $70 per month for a contract period of two years. However, the actual iPhone 6 price which included a mobile repayment option was $81 per month over two years, says Gizmodo. The consumer watchdog has fined Telstra for misleading the reader by including the additional $11 monthly charge in the fine print of the advertisement. In the past too, ACCC had addressed the Australian telecommunications giant in October for smartphone warranty policies, says PC World.

"Businesses must be careful about using attention grabbing headline prices to ensure that their advertisements do not mislead consumers about the actual price they will have to pay. This is especially the case for bundled goods and services like phones and plans." states that the chairman of ACCC, Rod Sims, reveals Gizmodo.

Telstra spokesperson Steve Carey reacted to the step taken by ACCC by stating that the company was surprised by the notice issued by the regulatory body. He went on to say that Telstra had mentioned the prices for mobile plan and handset very clearly on the advertisement. He adds that the text on the ad appeared prominent because it was published in a full page of the newspaper.

Telstra claims that even though their ad was in full compliance with the law, it has paid the fine amount and considers that the issue is closed. Also, it has edited the advertisement so that its customers can clearly read and understand on the price they will pay every month for a plan and device. Carey added that instead of using formal enforcement mechanisms, it would be better to handle such matters through constructive engagement between industry and governing body.