The company behind pay-as-you-go telco ALDImobile has conceded it likely misled customers by claiming one of its pre-paid plans offered unlimited calls and texts.
The plan in question in fact contained daily, three-day and 30-day limits on voice calls and texts.
Medion Australia, which supplies pre-paid mobile phone products under the ALDImobile brand, has offered the ACCC a court-enforceable undertaking to refrain from advertising as "unlimited" any plans that are subject to usage limits.
As a condition of the undertaking, Medion has also published a corrective notice on its website, in which it admits to "likely" contravening consumer law.
The deputy chair of the ACCC, Delia Rickard, said the watchdog was concerned by telcos who make sweeping offers and hide limitations in fine print.
"The ACCC is particularly concerned about the use of `unlimited', or similar terms, in telecommunications industry advertising when significant restrictions apply."
Medion, which is not controlled by the ALDI supermarket chain, has changed the name of the "Unlimited Pack" to "$35 plan" and removed the description of unlimited from its advertising.