Raise your IQ by being an informed consumer

Media Release
Issued 27 March 2009/no 116

Raise your IQ by being an informed consumer

Consumers who respond to online IQ tests and love compatibility tests should be sure they have read the fine print.

The Commerce Commission has received a number of complaints about text subscription services that originate from such websites.

The usual scenario is that the consumer answers an online quiz and is requested to provide their cellphone number to receive the quiz results. They are then given a PIN number to enter on the website and results are sent to their mobile phone. The consumer is then deemed to have subscribed to a text subscription service and will receive between three and five texts a week at between $3 and $5 per text.

Commerce Commission Director of Fair Trading, Adrian Sparrow said, “Many complainants felt misled about this continuing text subscription. However, if terms and conditions are clearly displayed on the website, as is the case on the sites the Commission has examined, it is really a matter for the consumer to make an informed decision.”

“If you want to check your IQ, the first test you should pass is knowing to read the terms and conditions and fully understand what you are entering into,” said Mr Sparrow.

The Commission will not be taking any action at this time against any of the websites about which it has received complaints to date. However, if further complaints come to light indicating

unsolicited subscription or failure to comply with the terms and conditions of the offer the Commission will reconsider the need for further investigation.

Background

The Fair Trading Act. Court penalties for breaching the Fair Trading Act can include fines of up to $200,000 for a company and $60,000 for an individual. Only the courts can decide if a representation has breached the Act.

ENDS

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