Certain newspaper advertisements by HKBN about its broadband services were alleged to be misleading or deceptive. The complainant claimed that HKBN made unqualified statements in
the advertisements concerning the transmission speeds of its broadband services, when the speed performance was subject to various qualifications that affected the claimed
speeds. The complainant alleged that the advertisements were misleading or deceptive in the circumstances.
The Authority’s conclusion is that this was a substantive breach of section 7M, and having regard to the maximum applicable penalty of $1,000,000, the appropriate starting point for determining the level of financial penalty is $270,000. While the breach is serious, in mitigation it is noted that the Authority has not received any consumer complaints about the advertisements, and there is no evidence that large numbers of consumers were actually induced to take up the services, under the belief that the services would be subject to no qualifications that may substantially affect
the speed performance. The Authority has also taken into account the fact that HKBN has generally been cooperative in providing information requested by OFTA to conduct the investigation. The Authority is of the opinion that in this case of a third penalty for HKBN, the penalty which is proportionate and reasonable in relation to the conduct concerned is $220,000.
See
Press ReleaseSource:
OFTA