The Commerce Commission is prosecuting Telecom for breaches of the Fair Trading Act in relation to the company's "Go Large" broadband advertising campaign.
In a statement released this morning the Commission says the 2006 campaign made a number of misrepresentations. These included including: "Xtra Broadband is about to be unleashed!", "unlimited data usage and all the internet you can handle" and "maximum speed internet".
The Commission launched an investigation in December 2006 following complaints from customers of Telecom's ISP Xtra.
"The Commission has decided to prosecute Telecom and Xtra for alleged breaches of the Fair Trading Act in that the companies allegedly engaged in conduct that was liable to mislead the public as to the characteristics of services and made false or misleading representations about the performance characteristics of the Go Large plan," the statement says.
The Commission says it has no further comment as the matter is now before the courts.