The ACCC has slapped Australia’s three largest internet service providers with fines totalling $33.5 million, after each admitted to making false or misleading statements when promoting various NBN internet plans.
Telstra was ordered to pay $15 million, Optus was ordered to pay $13.5 million, and TPG ordered to pay $5 million in penalties for breaching the Australian Consumer Law.
Each fine is for making false or misleading statements in relation to their 50Mbps or 100Mbps fibre to the node (FTTN) plans.
Telstra, Optus and TPG each promised to tell consumers within a reasonable timeframe if the speeds they were paying for could not be reached on their NBN connections, according to the ACCC.
Each also promised to offer options, including cheaper plans with a refund, if they could not achieve the maximum speed on their plans.
“Telstra, Optus, and TPG each admitted that their statements were false or misleading, in breach of the ACL, because they did not have adequate systems, processes and policies in place to ensure they would do what they said they would,” the ACCC said.
These false or misleading statements affected nearly 120,000 consumers, over a twelve month period spanning 2019 and 2020.
“Fast and reliable internet is a necessity for Australian households, and consumers need accurate information when choosing the best internet plan to meet their needs,” ACCC Commissioner Liza Carver said.
“These significant penalties reflect the seriousness of the breaches of consumer laws by these large and sophisticated businesses that should be better informed about their obligations towards their customers, particularly given the promises they made to their customers and in undertakings previously provided to the ACCC regarding speed claims for their NBN plans in 2017.
“Some customers may have paid for a 50 or 100 Mbps plan believing their NBN connection could support the higher download speeds, even though they would have been better off paying for a lower speed plan.
“It is illegal for businesses to make false or misleading representations to consumers about the performance characteristics, nature, standard or quality of products and services.”
Telstra, Optus, and TPG have each implemented remediation programs and have already contacted impacted customers to provide refunds. They were also ordered to pay parts of the ACCC’s costs.
