AGCM

These are the conclusions of an analysis of misleading advertising rulings regarding goods and services in fixed-line and mobile telephony, fixed/mobile integrated services, Internet access and browsing and integrated services for voice/data or voice/data/television. In the Authority's view, this is a particularly serious phenomenon given the great variety and rapid change in commercial offerings that may lead to disorientation on the part of the consumer. The Authority, which will continue to keep a close watch on the industry, considers it essential that businesses use clear, complete advertising messages. This is confirmed by an analysis of interventions to date.

Television commercials in particular are under the spotlight, since they have been shown to be lacking in completeness and clarity as regards their information content; the use of ticker-tape and superimposed messaging is insufficient to detail the true conditions governing the offerings.

In terms of consumer protection, and based on 15 years of experience in applying the law on misleading advertising, the Authority's analysis has shown up the most serious areas where a lack of information can mislead.

‘CAMOUFLAGED’ COSTS

Advertisements often omit the "flag-fall" charge when a connection is established, the costs of activation or the existence of monthly charges or the rental cost of equipment needed to use the service. Some charging mechanisms debit a certain number of seconds in advance while others debit the actual number of seconds used, but the advertisements do not necessarily specify this. Cases were also found where information was lacking as to charges applied at the expiration of the special plan advertised or where conditions were not specified for the recharging of one's phone credit by making or receiving calls. When an advertisement trumpets a given rate for a service, it often does not indicate that not all numbers can be called at the advertised rate. In other cases, there is no indication that, in order to benefit from the special rate, one must reach a certain level of incoming or outgoing traffic. Some advertisements do not specify that the rate applies only up to a certain number of calls, after which less advantageous rates apply.

IF THE TECHNOLOGY IS NOT AVAILABLE

Advertisements often do not clarify the need to check signal coverage for the service offered, as in the case of UMTS services or for the viewing of TV on a cellular phone. Information about effective Internet connection and browsing speeds is often lacking, as well as information on factors which may influence the quality of the service, or the need to check the suitability of the customer's equipment for using the service offered.

‘FOREVER’ DEALS AND HIDDEN OBLIGATIONS

The term ‘forever’ is misleading when in realty there is a cut-off date for using the service at a given price. Sometimes the period of validity of the offer and/or the conditions upon which it is based are not shown.

Advertising is also misleading when it does not specify that in order to  receive a mobile phone at the advertised price, one must sign up to a particular pricing plan for a particular period, or when it does not explain that there are limitations on the method of payment (only by credit card or banker's order). Sometimes the existence of a penalty clause in the case of early withdrawal is not mentioned.

Rome, 14 April 2007