(Adds Melita's reaction)

Melita plc adverts promoting its new mobile service may mislead consumers, the Consumer and Competition Division said in a statement.

The company’s adverts state that the rates are “up to 30 percent cheaper”. However, a full minute is charged for a call lasting even a few seconds.

But Melita denied any allegation of misleading advertising and accused the division of acting arbitrarily without consulting Melita on this claim and without following normal procedures set by law.

The company said that it was only informed of the division's concern after reading reports in the media. All brochures developed in relation to Melita mobile services clearly indicated that calls were charged on a per second basis after the first minute.

In addition, all customer service representatives at point of sale, were trained to inform customers accordingly.

The division said in its statement that the note in small print saying that “calls are on a per second basis after the first minute” did not seem to be clear enough for the average consumer to take an informed decision.

The division said it was investigating the matter.

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