Dodo Refund $360K Over False NBN Streaming Claims
Dodo Services Pty Limited has agreed to refund up to $360,000 to 16,000 customers after the ACCC refuted its “perfect for streaming” entry-level NBN broadband plans.
The refunds form part of a court-enforceable undertaking made to the ACCC, with Dodo admitting to false or misleading conduct, and in breach of Australian Consumer Law (ACL).
From November 2015 to March 2018, Dodo advertised plans with a maximum speed of 12Mbps as “perfect for streaming”, with some plans only including 10GB of data.
“We were concerned that Dodo customers on these plans could not reliably stream high quality video, particularly when others in the household were using the internet at the same time,” asserts ACCC Chair, Rod Sims.
“At 12Mbps, Dodo’s customers could not stream ultra HD video at all.”
Dodo is a wholly owned subsidiary of Vocus Group Pty Ltd, and sells retail fixed-line NBN broadband plans and other telco services.
The company has agreed to refund around 16,000 current and former customers who incurred excess data charges during the time the “perfect for streaming” advertisements were published.
Existing customers who were subject to excess data charges will also be offered the option to exit their contract at no cost.
“It is simply unacceptable for an internet service provider to tell consumers that their services are ‘perfect’ for a particular use, and to then charge them extra when they use the service as advertised,” affirms Mr Sims.
“According to Netflix, high definition streaming uses up to 3GB of data per hour. With these plans a customer would have to pay extra if they streamed just two or three movies”
“We don’t believe NBN plans with just 10GB of included data are ‘perfect for streaming”
“Consumers rely on how internet providers describe their services when choosing the best broadband plan for their needs, so these descriptions must be accurate.”
The ACCC claims Dodo customers would use up their data allowance after a ‘modest’ amount of streaming, noting an included 10GB monthly data limit.
Further information is available on the ACCC’s website here.