The Commerce Commission is investigating TMG Asia Pacific Pty Limited, an Australian based company, for alleged breaches of the Fair Trading Act from their promotions advertised on New Zealand television.

The promotion offers entrants prizes of electronic goods such as televisions, DVD players and game consoles. Consumers send text messages to enter the promotions.

Deborah Battell, Commerce Commission Director of Fair Trading, says, "The Commission has received almost 180 complaints from the public about charges on their mobile phones when entering TMG's television promotions. This is an exceptionally high number of complaints for a single issue."

"Complaints suggest consumers were not aware that they were both entering a promotion and subscribing to a service when they texted to 8555. They appear not to have known that they would be charged $3 for each subsequent text they received, that this would cost them up to $15 per month or that the service would continue unless they texted 'STOP'.

Ms Battell says, "The Commerce Commission is investigatingwhether the disclosure of the terms and conditions of these promotions was adequate."

The Commission initially raised concerns with TMG Asia Pacific in November 2006 about its promotions.

"The company has been made well aware of our concerns. The Commission has now asked the company to respond by 4pm, Thursday, 18 January 2007," says Ms Battell.

Ms Battell said the Commission was still interested in receiving complaints from any consumers affected by the promotion.

"Affected consumers, or even those who believe they have been affected by these promotions, can contact the Commission by email or phone to register their complaint."

Ms Battell also said that consumers wanting to exit the service can do so by texting 'STOP" to 8555.

Background

Complaints can be made to the Commerce Commission's contact centre by email to

contact@comcom.govt.nz , or by phone to 0800 943 600. Affected consumers should provide:

  • contact details
  • when they entered the promotions
  • which promotions they entered
  • amount charged and spent on the promotions, and
  • any details of contact with the company.