WARNING: diabolical fine print in Optus' new "monster caps"

Dan Warne06 May 2009, 1:17 PM

$680 worth of calls for $49 looks like a great deal, but Optus is again using dodgy fine print to cheat customers.


Every time Optus has a pricing announcement, it's about providing more value for customers, saying 'yes', listening to what customers want, and so on.

And invariably, Optus adds nasty fine print that cheat customers out of what they think they're signing up for.

The latest shonky deal is Optus' new "monster caps", which offer "$680" worth of calling credit for $49.

Like many telcos, Optus has inflated the figure by splitting this amount into two: $330 to call people on any network, and $350 to call people only on Optus.

While we're no fans of this condition, Optus is not alone in doing it -- all the mobile telcos have similar plans. Also, it's probably no worse than ISPs advertising "50GB" of download allowance, and then only allowing you to use 40GB of it between 2am and 7am.

However, just like its wireless broadband service that charges you for 10MB of usage even if you only use 1KB in a session, Optus is taking the invention of dodgy terms and conditions to a new low.

It is now billing in one minute increments rather than 30 second ones, meaning a 1 second call will cost you a minimum $1.15.

But wait, there's more. These new "monster caps" require you to first burn through your $330 calling allowance to call people on any network before you can access any of your $350 Optus-to-Optus calling allowance.

This is pure evil in two ways: while you're in your first $330, even when you're calling Optus customers, you're using up your 'any network' credits.

Secondly, once you've used up your $330 worth of any network calling credit, and you're into Optus-to-Optus only territory, you'll be charged full rates on top of your $49 plan fee for any mobile calls you make to a non Optus customer. That $49 plan fee will quickly balloon.

Put simply, when Optus says "monster caps", what they really mean is "monster bills".

If Optus was feeling in an honest mood, it would advertise these plans as offering $330 worth of calling credit. In smaller print it could mention that you qualify for a further $350 of calls to Optus customers once you've used up the $330. But instead, Optus has decided to lump both figures together and use "Up to $680" as the headline offer. There's just no good reason to do this other than to try to hook in customers who think they are going to get $680 worth of credit.

Looking at Optus' marketing material, the telco clearly feels uncomfortable with how far it is pushing the boundaries, and has made efforts (in fine print) to make the limitations clear. However, it will also need to ensure that young mobile phone salesman makes these crucial limitations absolutely clear to every single customer before signing them up.

The problem for Optus is that the Trade Practices Act forbids companies from putting important limitations in fine print.

If a salesman glosses over the limitations or sells the plan based on the headline $680 calling value without explaining the stingy way Optus allocates a credit, consumers would have a strong case to complain to the ACCC and Office of Fair Trading that they have been sold a service on false premises. They should also complain to the Telecommunications Industry Ombudsman, which bills the cost of processing the complaint to Optus.


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Tin (Senior Forumologist):

Anyone who signs up without reading fine print is a moron.

Anyone who signs up because the salesperson said it was OK is a moron (especially in big brand name shops).

And the fine print on the website is hardly fine print. It's written in quite OK size print in the middle of the plan list.

06 May 2009, 4:22 PM (10 months ago)report abuse Send to a friend reply

todd_h86 (Cornerstone member):

Telstra have been doing this for years with ALL their cap plans, it varies depending on how much your cap is, for the $49 where you get $350, the last $50 is to telstra only... only problem is how do you know when your on your last $50 of credit? Just because Optus chose to bump that up to $350, doesnt mean its diabolical or dodgy, just another reason why you should read the print.

Im assumimg they got a report that said the majority of the cap users mostly call Optus mobiles (I do, just happens that way!)

06 May 2009, 7:01 PM (10 months ago)report abuse Send to a friend reply

kaf (New user):

Wow! Now we are using the "telstra does it too so it's ok" defence. Because we all know that telstra is the benchmark for morality.

Fine print exists for the purposes of misinformation. It is fine because they don't want you to read it. That is why putting crucial information there is evil. But thats not even the biggest problem here. Neither is the fact that there is no way to know when you are over your cap! And you don't even know when you are in your Optus2Optus cap! The fact is advertising one thing and giving you another is wrong and illegal. People are told they are getting $680 worth of calls. Someone getting an unexpected $400 bill at the end of a month can be devastating and can ruin lives if the person is already having financial difficulty. There is no defending this.

06 May 2009, 11:01 PM (10 months ago)report abuse Send to a friend reply

todd_h86 (Cornerstone member):

Quoting kaf:
Wow! Now we are using the "telstra does it too so it's ok" defence. Because we all know that telstra is the benchmark for morality.

I wasnt saying it was ok because Telstra does it, I was just putting it out there that Optus isnt the only telco to do this... and if there is going to a witch hunt, Telstra should be a suspect too...

But as always, no one is forcing people to use this..... I'm still happy on my $59 iPhone cap, in my opinion the best iPhone plan in Aus, I pay $2.30 a month for my phone and get 500mb data, as well as $350 to call/sms with.

Also I should point out that the 'fine print' in mention is actually larger than what 'fine print' typically is!




07 May 2009, 9:50 AM (10 months ago)report abuse Send to a friend reply

CCCMikey (User):

Why do they get it so wrong when their resellers get it so right. In this case, TPG with their $20 for $300 which equals approx. 5 hours talk time at 8c a minute with far less trickery. Likewise Virgin and Exetel HSPA have none of that 'session fee' bollocks.

07 May 2009, 1:15 AM (10 months ago)report abuse Send to a friend reply

McBanjo (User):

I would argue that the important details are up there. $330 value for anyone and $350 for Optus calls. If you're stupid enough to go with Optus, then as a rational, reasonable consumer, you would know they are going to rip you off in the fine print. You would also know when a deal is too good to be true.

The fine print is in the contract, and if you sign it, you are expected by law to have entered into it as if you understood it, regardless of reading it. You then have very, very few legal grounds to stand on (only defences like duress, influence, misstatements by the salesperson). The law works better for you as a consumer, but I hardly think this comes under misleading and deceiving conduct on Optus' part.

07 May 2009, 10:33 AM (10 months ago)report abuse Send to a friend reply

NickChapln (New user):

I really dont have a problem with this cap at all. i think its great.. its better value than their last cap, who would sign up with optus if all u do is call people on other networks. the fine print on this ad is MUCH better than the fine print that goes with thier prepauid turbo.. all you see is

$400 value + 150MB Data PLUS Unlimited access to MySpace Mobile & YouTube

but if u hover over it u get..
Recharge Value $40 = $400 value ($40 MyCredit, $160 MyBonus, $200 Pre-Paid Messaging Money, up to 150MB MyData + Unlimited access to MySpace & YouTube)

$200 of that $400 is for sms ONLY.

i think this is a great plan, u are just looking for an excuse to bash optus.



07 May 2009, 11:04 AM (10 months ago)report abuse Send to a friend reply

Tin (Senior Forumologist):

Seems pretty clear to me. And the "fine print" isn't exactly that small.

Telstra pull much worse stunts than this. Like advertising the half price cost that only applies for 6 months of a 3 year contract.
And another provider I found greatly difficult to determine what their cap included because they just said it had $x of calls. Took another 10 minutes to find the per minute rates.

07 May 2009, 2:09 PM (10 months ago)report abuse Send to a friend reply

Dan Warne (Administrator):

Yes, Optus is hardly alone in the telco world of dodgy, overcomplicated price plans. But I think these plans took it to a new level -- the one minute charging, the "$680" headline, preventing people from using their Optus-to-Optus credit until they'd used up their any network credit, and so on. It just stinks of "out to get you", not "we're trying to construct an easy-to-understand, honest price plan."

07 May 2009, 10:45 PM (10 months ago)report abuse Send to a friend reply

wheelyweb (New user):

You can also have your say at @ihateoptus and @badoptus

26 May 2009, 7:50 AM (10 months ago)report abuse Send to a friend reply

wheelyweb (New user):

There are plenty of places your voice can be heard. Check out twitter and public forums to help spread the bad news, and definitely take the time to write a letter to the Telecoms ombudsman and write to senior Directors at any organisation in question.

26 May 2009, 7:50 AM (10 months ago)report abuse Send to a friend reply

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