Foxtel says it will compensate its customers who did not receive a promised free television within 10 days as promised as part of a promotional offer.

The pay television company has given an undertaking to the competition watchdog to give one month’s free subscription to customers who signed up for the deal but did not receive the 22-inch (55.88 centimetres) television in the allotted time.

The Australian Competition and Consumer Commission (ACCC) had claimed that Foxtel’s free television offer breached Australian consumer law.

Foxtel advertised that customers who signed up for a 12-month plan between February 12 and April 5, 2012, would receive a free 22-inch television within 10 days of installation.

However, a significant number of customers who signed up did not receive the television within the specified time and the ACCC believes Foxtel did not take sufficient steps to ensure it could deliver on its promise.

Foxtel also advertised that the offer was limited to 1,500 televisions but signed up nearly 8,400 subscribers to the promotion.

ACCC chairman Rod Sims said businesses needed to deliver on their promises.

“It is important for businesses to have a reasonable basis for any promises made to consumers otherwise they risk breaching the Australian consumer law,” ACCC Chairman Rod Sims said.

“Businesses must review claims made in advertisements to ensure they remain accurate at all times.”

Foxtel said it would aim to ensure that all affected customers received their free month’s subscription by July 15.

It has also said it would not engage in similar conduct in the future and will review any areas of its business which could be at risk of breaching competition and consumer laws.