The consumer watchdog is putting telecommunications giants on notice over how they sell their “unlimited” packages to consumers.

The Australian Competition and Consumer Commission (ACCC) isn’t happy with how limitations to the plans are communicated to consumers in ads.

There’s often more to ‘unlimited’ plans than meets the eye, with customers receiving the high-speed services they’re promised but only until their initial data allowance is exhausted.

After that, speeds are capped.

ACCC boss Rod Sims has warned telcos to carefully consider how they market their plans or face the repercussions.

“It’s all about, what does a reasonable consumer think?” Mr Sims tells John Stanley.

“And if you hear the word ‘unlimited’, such an absolute term, then we believe if you’re going to qualify – it’s got to be right up there in bold terms.”

He says consumers “shouldn’t have to be searching around” to determine what ‘unlimited’ means.

“So if you’re using ‘unlimited’ you’ve got to qualify it immediately in a way that’s readily apparent to the consumer.”

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