Vodafone Malta has lodged a formal complaint with the Consumer and Competition Division (CCD) against Go Mobile for what it claims is "misleading and deceptive advertising".
Vodafone is asking the division to investigate "with urgency" unfair practices by Go Mobile in its comparative advertising campaign on text messages (SMS).
Vodafone maintains that "this campaign infringes the Consumer Affairs Act (sections 48 and 50) in a number of ways and in so doing it is deceiving consumers", the company said in a statement on Friday.
"Go Mobile's advertising stating that it has 'the lowest SMS rate in Malta', that one can send 'unlimited SMS at 1c to everyone' and that 'only Go Mobile offers you SMS at 1c to everyone' are false and misleading," Vodafone said.
"Vodafone's price of SMS results in being equal to Go Mobile's when calculated, for example, on 400 SMSes. In reality, for one to benefit from Go Mobile's offer of text messages at 1c, one would need to continue buying bundles of messages of 300 or 500 SMSes at one go.
"This clarification is missing in Go Mobile's advertising. Vodafone's minimum cost per month is Lm2 while Go Mobile's bundle of 300 SMS amounts to Lm3 per 30-day window, with the resultant effect that it is more likely for a customer to purchase SMSes in excess of requirements with Go Mobile than it is with Vodafone.
"The use of the words 'only' and 'unlimited' are also deceptive, because the SMS bundle at 1c is in fact limited and determined by the bundle that a customer buys and by the time window stipulated by the tariff plan."
Vodafone said it matched the Go Mobile rate at certain usage points, so the word "only" was misleading.
It is also objecting to Go Mobile's statement "go for the real 1c SMS rate", which implies that Vodafone's SMS rate or statements about its text plan are false. "This misleads customers into believing that there is no alternative to the Go Mobile offering when, in fact, there is one by Vodafone.
"Other statements by Go Mobile, such as 'No extra monthly fee applies. No gimmicks' also suggest improper practices by Vodafone, when, in fact, the Vodafone plan is straightforward and explained in appropriate detail to customers," Vodafone said.
"Go Mobile's adverts fail to show clearly and adequately that certain terms and conditions relating to its tariffs apply. In the television commercials, Go Mobile also short-changes consumers by not allowing viewers sufficient time to assimilate the entire components of the tariff, since the information scrolls across the screen too rapidly to be deciphered."
Vodafone reiterated that Go Mobile's unfair practices were causing "serious prejudice" to its interests and those of its consumers, and to competition at large.