26 September 2023

Telstra warned over excess data charges

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The Australian Communications and Media Authority (ACMA) has issued Telstra with a formal warning for failing to send data usage email notifications to more than 150,000 mobile broadband customers, leading to their customers having to pay unexpected excess usage charges.

Chair of ACMA, Nerida O’Loughlin said Telstra self-reported to ACMA that between September 2013 and May 2019 it had breached its obligations under the telecommunications Consumer Protections (TCP) Code to send usage notifications via email.

“Usage notifications give people due warning that they may be about to incur additional charges for their broadband services,” Ms O’Loughlin said.

“The code requires suppliers to send notifications within 48 hours of customers reaching specified data usage quotas on post-paid internet plans,” she said.

“Consumers have a right to make informed decisions about their broadband use, and by failing to send these notifications in the correct format people have had to pay excess usage charges without sufficient warning.”

Ms O’Loughlin said Telstra had automatically refunded all customers who lodged a complaint about excess usage over the relevant period or incurred an excess usage charge of $5 or less.

“We encourage current or former Telstra mobile broadband customers to contact Telstra for a refund if they believe they incurred excess usage charges as a result of not receiving a usage notification,” she said.

She said that any further breaches of the code would likely result in more serious regulatory action.

“ACMA has asked Telstra to report regularly on its progress of refunding affected customers until all customers have been reimbursed,” Ms O’Loughlin said.

She said Telstra customers who believed they had incurred excess usage charges as a result of not receiving a usage notification during the periods nominated can contact Telstra on 13 22 00.

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