ACMA fires warning shot at Starlink for breaching advertising rules
ACMA has issued a warning to Elon Musk’s Starlink for not adding an end date to hugely discounted hardware for rural Aussies.
The Australian Communications and Media Authority (ACMA) has issued a warning to Starlink — Elon Musk’s low-orbit satellite internet provider — for breaching advertising rules.
Launched in 2021, Starlink has become a popular telecommunications solution, particularly for those in rural areas. Here in Australia, it has become a major competitor for NBN Co’s own Sky Muster satellite system.
According to the communications watchdog, Starlink has failed to comply with the Telecommunications Consumer Protections (TCP) Code by not indicating an end date for a promotion from June 2023.
A few weeks later, in July, Telstra and Optus announced upcoming partnerships with Starlink. The partnership with Telstra will involve offering home phone services and Starlink broadband services as a bundle offer for rural customers. This will include a plan specifically for business customers. Optus is focusing on providing almost 100% mobile coverage across the continent.
At the time we reported that Starlink was targeting remote Australian customers with a limited-time ‘Rural Australia’ offering that dropped the $924 hardware price down to $199.
ACMA has confirmed that the alleged rule breach did come from a complaint from June 2023. According to a screenshot from the investigation report, it was the same offering SmartCompany previously reported on.
According to the submissions Starlink made to ACMA, the “… discounts have been established for a limited time, but a specific end date for the promotion has not been set”.
Starlink said that the reason for this was to determine whether the significant price drop affected customer uptake before deciding to end the promotion.
“Under the TCP code, if a special promotion is advertised as being available for a limited time only, telcos must be transparent about the date the promotion will end,” ACMA said in a statement.
“When advertising special promotions, telcos must include information about important limitations to allow consumers to make informed choices.”
According to ACMA telcos can face penalties up to $250,000 for failing to comply with the TCP code.
At the time of writing Starlink is running another sale, specifically to selling refurbished hardware at 50% off. The company has added an end date of September 26 for this one.
