Softbank Mobile to modify ad scheme on request of trade watchdog

02 Nov 2006
00:00

(Associated Press via NewsEdge) Japan mobile phone carrier Softbank will modify the content of its advertising to make sure it doesn't mislead customers at the request of the country's fair trade watchdog, a company official said.

The move by the Tokyo-based Softbank Mobile comes just a few days after the Fair Trade Commission called in Softbank officials dealing with the company's advertising for explanations, Softbank Mobile spokesman Arata Kurihara said.

The company's advertising campaign has emphasized free calls and email between Softbank Mobile customers, though with various time conditions are attached.

Kurihara said the company will modify the content of its advertising on new services following an advice given from the FTC, with modified TV commercial planned to be aired on Saturday.

The FTC's probe followed an 'inquiry' from rivals KDDI and NTT DoCoMo about their competitor's advertising.

The officials especially questioned whether the text was too small, leading to the possibility that consumers are being mislead in violation of the advertising law.

KDDI officials have said they also had held informal talks with the FTC about Softbank's advertising.

Softbank earlier was warned by government officials after a rush of customers wanting to switch to its service caused a system crash over the weekend.

The company aggressively slashed its prices last week to undercut rivals, only to stop accepting new customers over the weekend when its computer system couldn't handle the barrage of new applications.

© 2006 The Associated Press

© 2006 Dialog, a Thomson business. All rights reserved

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