PCCW has been warned by Hong Kong's telecommunications watchdog for the third time in five months for running down rival companies with misleading advertising campaigns.
The Office of the Telecommunications Authority (Ofta) issued a written warning to the company for claiming its IDD rates for calling the mainland were substantially cheaper than those of its rivals.
PCCW distributed promotional leaflets last year comparing its IDD rates to those of Wharf T&T and other operators to show how customers could save money by switching to PCCW.
However, the ads left out the off-peak rate and a 12 per cent discount offered to some customers of Wharf T&T, which lodged a complaint against the marketing campaign last August.
After a five-month investigation, Ofta found that the PCCW campaign 'had the effect of misleading or deceiving customers'. PCCW made comparisons in its campaign between its 24-hour flat rates for calling the mainland with the peak rates charged by Wharf T&T and other operators.
The company argued its marketing was acceptable because it used asterisks and footnotes, which pointed out that it had cited peak rates of other operators and excluded other promotional offers.
An Ofta report into the complaint said the comparisons made by PCCW in its promotional material were 'not a 'like-for-like' comparison'.
