Mahesh Sharma | August 14, 2008
HAVING settled its own beef with the corporate watchdog over breaching the Trade Practices Act, Telstra's classifieds business has leveled similar accusations at a rival Australian auction site.
Lawyers representing Sensis, Telstra’s digital arm, sent a letter to online auction site OZtion yesterday, claiming statements promoting its "free to list" offering don’t clearly explain additional costs to customers.“Customers are required to pay fees to list their item for sale where they select certain promotional features or sell an item under a particular classified listing category,” Sensis general counsel Niki Hantzis wrote in a letter obtained by The Australian.
"These facts are not explained or referred to in or in close proximity to the Statements.”
Sensis has set a deadline of 5 pm Wednesday 20 August for OZtion to cease making the statements and insert a prominent disclaimer that there are costs associated with the sale of an item.
Oztion will not respond to the letter.
“The accusations are baseless,” said managing director Phil Druce.
"We offer free listings and will continue to do so. Users understand this and regardless of any impact it is having on the Trading Post business we will not stop advertising this fact.”
In April, Telstra reached a settlement with the Australian Consumer and Competition Commission admitting its classifieds business, Trading Post, contravened the Trade Practices Act through misleading and deceptive conduct.
Trading Post engaged in this behaviour by advertising on Google using the keywords of names of competing businesses, the ACCC alleged.
Sensis said its actions were based on the ACCC's focus on the use of the word free in promotional materials.
"Sensis believes it is in our customers' best interests and the online auction industry's as a whole, for businesses to fully disclose terms and conditions associated with their advertising promotions," said corporate affairs adviser Lucinda Tippett.