A regulator has demanded One NZ stop using the term “100% mobile coverage” and fears the company’s ads are misleading people.

Commerce Commission chair John Small said an early investigation into representations made in One NZ’s campaign raised concerns of conduct breaching the Fair Trading Act.

And he was worried consumers were being harmed, and the One NZ campaign could distort competition in the sector.

The “Stop Now Letter”said One NZ’s claim of “100% mobile coverage. Launching 2024″ was potentially false or misleading.

“These concerns arise from the absolute and unqualified nature of the claim and that the majority of the advertising does not make it clear that limitations apply to the mobile coverage.”

The commission said coverage will in fact just provide ability to access text messages from late 2024, and only in locations where a consumer’s mobile phone has line of sight to the sky.

“The promotional material does not explain what this means,” the commission added.

It said the “100%” claim would probably be interpreted as the ability to access texts, voice calling and data in all locations in New Zealand, at all times, from 2024.

“The requirement for line of sight to the sky may significantly reduce the usefulness of the service in a way consumers would not expect, which is not apparent from the claims,” Small added.

The Commission asked One NZ to cease and desist making the representations without providing prominent qualifying information that explains the limitations of its coverage.

“Only the courts can decide if there has been a breach of the Fair Trading Act.”