Telstra, Optus and TPG fined $33.5million for charging customers internet speeds they couldn’t meet
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Telstra, Optus and TPG jointly fined $33.5 million for failing to tell customers they couldn’t achieve promised internet speeds
- Telstra, Optus and TPG Pay $33.5 Million Fine for Customer Internet Speeds
- The telcos were stabbed after failing to tell users about internet speed availability
- Telstra pays $15 million, Optus fines $13.5 million and TPG $5 million
- The Firms Acknowledged Liability for Violations of Australian Consumer Law
- ‘It is illegal to make false or misleading statements to consumers’: ACCC
- Affected customers have already been contacted to arrange refunds, it added
Three broadband internet providers have been fined $33.5 million for failing to ensure some customers get the internet speeds they paid for.
Telstra will pay $15 million after action is taken by the consumer watchdog, the Australian Competition and Consumer Commission (ACCC), in federal court.
The fine was agreed between Telstra and the watchdog and approved Friday by Judge Mark Moshinsky.
Optus agreed to pay $13.5 million, while TPG will pay $5 million.
Three separate cases were brought by the Australian Competition and Consumer Affairs Commission over statements to residential customers about broadband internet services using the NBN
Telstra to pay $15 million after ACCC action in federal court
Affected customers have already been approached by the companies to arrange refunds, the ACCC revealed
Each of the three providers acknowledged liability for violations of Australian consumer law, Judge Moshinsky said.
The ACCC has filed three separate cases regarding statements to residential customers about broadband internet services using the NBN.
The judge said each of the statements differed, but broadly involved customers who were told their maximum attainable speeds would be tested in a reasonable amount of time.
In most cases this happened, but some customers hadn’t tested speeds and ended up joining a plan for speeds they couldn’t achieve.
TPG was tasked with implementing a consumer law compliance program, while Optus must update its existing program
Customers were not notified or given the option to switch to another plan, Justice Moshinsky said.
Affected customers have already been approached by the companies to arrange refunds, the ACCC revealed.
“Some customers may have paid for a 50 or 100 Mbps plan assuming their NBN connection would support the faster download speeds, although they would have been better off paying for a lower rate plan,” said Commissioner Liza Carver. .
“It is illegal for companies to make false or misleading statements to consumers about the performance characteristics, nature, standard or quality of products and services.”
TPG was tasked with implementing a consumer compliance program, while Optus is required to update its existing program.
Telstra has had compliance obligations since 2020 when the ACCC took action for unscrupulous behavior towards Indigenous customers.
Judge Moshinsky’s reasons for the orders will be communicated at a later date.
Each of the three providers acknowledged liability for violations of Australian consumer law, Judge Moshinsky said