The Australian Communications and Media Authority (ACMA) has announced that telco companies Optus and TPG have refunded more than $4.4 million and $2.1 million, respectively to their customers for failing to inform them of under-delivering internet speeds.
In a statement, ACMA said tens of thousands of consumers were not informed that the maximum speeds advertised in their internet plans were not attainable on the NBN infrastructure that was available to them.
Chair of ACMA, Nerida O’Loughlin said that in July 2021, Optus self-reported that over a two-year period it had failed to inform more than 34,000 customers that they were not receiving the level of service they had purchased.
“In October 2021, TPG advised the ACMA that it had failed to provide more than 4,400 customers with the notifications required,” Ms O’Loughlin said.
“Under ACMA rules, telcos must verify maximum internet speeds when migrating customers to the NBN and notify them when speeds cannot meet those that were originally advertised to them,” she said.
Ms O’Loughlin said as a result of the breaches, ACMA had issued Optus with a remedial direction, while TPG offered a court-enforceable undertaking which was accepted.
“When telcos cannot deliver the internet speeds advertised in a plan, customers are entitled to move to a cheaper, lower-speed plan or exit the contract at no cost,” she said.
“Optus and TPG were charging these people for internet speeds they could not get.
“These customers were left in the dark and denied the option to move to a cheaper contract or walk away.”
Ms O’Loughlin said Optus and TPG were now required to commission an independent audit of their relevant compliance systems and implement effective systems and governance processes to ensure compliance in the future.
