Three GPS manufacturers to stop using 'lifetime' claims following ACCC investigation

TomTom, Navman and Garmin each made lifetime claims in marketing on their websites

Three of the biggest GPS manufacturers in Australia have agreed to stop using ‘lifetime’ claims in their advertising of navigation services after an investigation by the ACCC.

TomTom ANZ Pty Ltd (TomTom), MiTac Australia Pty Ltd (Navman) and Garmin Australasia Pty Ltd (Garmin) each made lifetime claims in marketing on their websites, on packaging and point-of-sale marketing, and in retailers’ catalogues and websites.

The ACCC raised concerns these statements were potentially false, misleading, or deceptive, because despite these lifetime statements, TomTom, Navman and Garmin each retained the discretion to stop providing these services before the end of the lifetime of the device in certain circumstances.

The ACCC considered these limitations were not communicated to consumers in a prominent way. 

“We believe the statements about ‘lifetime’ services made by these GPS manufacturers were inconsistent with what consumers would understand ‘lifetime’ to mean,” ACCC commissioner, Sarah Court, said.

“Consumers would have rightly expected to receive those services for the lifetime of the device, without the manufacturer being able to unilaterally terminate the commitment.

“Businesses must not deceive or mislead consumers in advertising, whether through small print, or by using ill-defined, broad terms like ‘lifetime’, and they should take care to use terms that match the understanding of consumers.

“We also encourage consumers to invoke their consumer rights if they believe they have been misled or are not getting what they paid for.”

TomTom, Navman and Garmin have agreed to amend their statements on all future advertising and marketing materials, including packaging.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu    

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments
cmo-xs-promo

Latest Videos

More Videos

Thanks for your feedback, Rabi. While we introduced the ROO concept using a marketing example, I also believe that it is pertinent to man...

Iggy Pintado

Introducing Return on Outcome (ROO) - Brand science - CMO Australia

Read more

Thanks for your insight, Philip. Return On Outcome (ROO) requires balanced thinking with the focus on outcomes as opposed to returns.

Iggy Pintado

Introducing Return on Outcome (ROO) - Brand science - CMO Australia

Read more

Beautiful article.

Hodlbaba

15 brands jumping into NFTs

Read more

"Blue" is really gorgeous and perfectly imitates a human customer support operator. Personally, I won't order a chatbot development for m...

Nate Ginsburg

Why the newest member of BT’s contact centre is a chatbot

Read more

As today’s market changes rapidly, the tools we use change, and it is important to adapt to those changes to continue to succeed in busin...

Anna Duda

Report: 10 digital commerce trends here to stay

Read more

Blog Posts

How the pandemic revealed the antidote to marketing’s image problem

What does marketing truly ‘own’ in most organisations? Brand and campaigns, definitely. Customer experience? That remains contested ground.

Murray Howe

Founder, The Markitects

Still pursuing a 360-degree view of the customer?

On the Internet, nobody knows you’re a dog.” It may have been true in 1993 when this caption to a Peter Steiner cartoon appeared in the New Yorker. But after 30 years online, it’s no longer the case.

Agility in 2022

Only the agile will survive and thrive in this environment and that’s why in 2022, agility will need to be a whole-business priority.

Sam McConnell

Melbourne bureau chief, Alpha Digital

Sign in