Ad breaches cost iiNet $200,000 fine

Internet provider iiNet has paid more than $200,000 in fines for failing to display adequately the price of one of its advertised products.

The company was fined over two ads for its Naked Broadband 250GB Plan, which appeared in Melbourne on a billboard and tram in November 2014.

The Australian Competition and Consumer Commission (ACCC) said while the ads showed the cost of the product, the displayed price was not prominent enough.

As a result, the watchdog issued the company with $204,000 worth of fines.

"The total minimum price was included in the advertisement but the ACCC considered that it was not displayed in a prominent way, as required by Australian Consumer Law," the ACCC said in a statement on Tuesday.

ACCC chairman Rod Simms said iiNet was pursued because consumers must be able to understand "the true cost of an advertised product so that they can make informed purchasing decisions".

"Businesses must ensure that when they advertise part of the price of a good or service, the total minimum price is also prominently displayed," he said.

In December the ACCC fined Telstra more than $100,000 over an iPhone 6 advertisement it deemed to misrepresent the price of the phone.

The ACCC says action against telco providers remains a priority.