One NZ, formerly known as Vodafone, has been handed a record $3.675 million fine for breaching the Fair Trading Act.

The telecommunications company has reportedly mislead consumers in their marketing of their FibreX broadband service.

Commerce Commission chair John Small says One NZ had the substantial financial resources to handle a fine of that size- as misleading consumers can't be a cost of doing business. 

"We think it's important that all businesses appreciate the seriousness of the Fair Trading Act, because it's so important for consumer protection and for promotion of competition."

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