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Sky $1 campaign ruffles ComCom feathers

A $1 upgrade marketing campaign by Sky TV has earned it a warning from the Commerce Commission for potentially misleading more than 2,500 customers.

A $1 upgrade marketing campaign by Sky TV has earned it a warning from the Commerce Commission for potentially misleading more than 2,500 customers.

Sky TV warningThe Commerce Commission launched a Fair Trading Act investigation of Sky earlier this year after a complaint from a customer who wanted to take advantage of a Sky promotion that offered existing subscribers an upgrade to a selected premium channel for $1 for a month, with the $1 donated to the Starship Foundation.

The customer complained that after ringing the Sky customer service line to sign up for the deal, and being left waiting on hold for an extended period, he requested the upgrade via Sky’s Interactive Voice Recognition phone service.

However the customer was charged the standard $25 for the upgrade rather than the $1 promoted.

After an investigation the Commerce Commission found a further 2,633 subscribers were also incorrectly charged.

This resulted in a warning for Sky, which  conducted its own investigation and established that its Interactive Voice Recognition phone service had not been updated with the correct pricing information.

Sky then donated the correct sum to Starship Foundation and credited affected customers $55,990.

“The commission believes this may have been a breach of the Fair Trading Act. We have decided to issue a warning to Sky in this instance as they have fully cooperated with our investigation and acted quickly to put the matter right,” said Commerce Commission competition manager Greg Allan.

In its warning letter, however, the commission said it will continue to monitor Sky’s conduct and any future breaches of the Fair Trading Act might result in stronger action.

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