OFTA has published a decision following an investigation into Alleged Misleading or Deceptive Newspaper Advertisements by SmarTone. The Telecommunications Authority (the “Authority”) received an industry complaint alleging that certain newspaper advertisements of SmarTone promoting its mobile service packages were in contravention of section 7M of the Telecommunications Ordinance1 (the “Ordinance”). 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 $220,000. While the breach is serious, in mitigation it is noted that the Authority has not received any section 7M related consumer complaints concerning the Advertisements. Further, SmarTone has been cooperative with OFTA throughout the investigation. The Authority has not been able to establish that there are any aggravating factors which offset the mitigating factors which have been taken into account. Accordingly, the Authority is of the opinion that in this case of a third financial penalty for SmarTone, the penalty which is proportionate and reasonable in relation to the conduct concerned is $180,000.
See
Press Release and PDF document (attached)
Source :
OFTAT110_08.pdf (1,69 MB)