Bet365 fined ?1.4m for Australian advertising breach
Federal Court imposes hefty penalty after an "unintentional software" problem led to free bet T&Cs error
Bet365 was hit with a AU$2.75m (?1.4m) fine this week after an “unintentional software error” led to the firm running a free bet offer the Australian Federal Court deemed “misleading and deceptive”.
The ‘$200 FREE BETS FOR NEW CUSTOMERS’ offer ran on bet365.com.au between March 2013 and January 2014, and was found not to have sufficiently brought to the attention of customers the promotion’s terms and conditions.
The case was brought before the country’s federal court by the Australian Competition and Consumer Commission (ACCC) after players found they were only able to receive the free bets after depositing and gambling $200 of their own money first.
However, bet365 today acknowledged the error should not have occurred and in response said it had introduced stricter compliance processes, as well as improved staff training.
“The court has acknowledged that the issue arose as a result of an unintentional software error and that bet365 had already corrected the error before being contacted by the Australian Competition and Consumer Commission,” a bet365 spokesperson said.
“Nevertheless, bet365 regrets that, as a result of this error, it may not have adequately brought to the attention of customers terms and conditions associated with the promotion.”
Chairman of the ACCC, Rob Sims, said it was “disappointing” such marketing activity had occurred, which follows a recent crackdown on gambling advertising in a number of individual Australian states.
“These penalties should serve as a warning to all businesses that it is not acceptable to promote ‘free’ offers as a headline offer without ensuring that any restrictions or limitations are disclosed in a prominent way that ensure consumers are fully informed before they are ‘enticed into a marketing web’,” he said.