Optus and TPG repay $ 6.5 million to consumers as they slow down NBN

The Announced by the Australian Communications and Media Authority (ACMA) Optus and TPG will refund 6.5 million to tens of thousands of NBN consumers because they have not properly notified that the internet is not fast enough.

Under ACMA rules, carriers must check the maximum internet speed when migrating customers to NBN and notify them if the speed does not match the advertised speed.

“Optus and TPG were charging these people for internet speeds they couldn’t get,” said ACMA Chair Nerida O’Loughlin.

As of March 23, Optus Internet Pty Ltd and TPG Internet Pty Ltd did not notify more than 38,000 customers, resulting in more than $ 4.4 million ($ 3.28 million) and $ 2.1 million ($ 1.57 million) refunds, respectively. .. The top speed advertised in their plans could not be achieved with the NBN offered to them.

O’Loughlin said that if the phone company can’t provide the internet speeds advertised in the plan, customers have the right to move to cheaper slower plans or cancel their contracts for free. These customers were put in the dark and rejected. The option to move to a cheaper contract or leave. “

In July 2021, Optus self-reported to ACMA from September 2018 to December 2020 (pdf), Could not notify more than 34,000 customers that they are not receiving the level of service they purchased.

October 2021, TPG tells ACMA from September 2018 to April 2021 (pdf) We were unable to provide the required notifications to more than 4,400 customers.

O’Loughlin said that there is a “significant” scale of service disruption, “our actions will allow the top three carriers to be more vigilant in providing Internet services that customers have expected and paid for. Will be. “

The ACMA has given Optus a corrective order, and the TPG has provided ACMA with a court-enforceable business.

Both telephone companies now need to outsource independent audits of relevant compliance systems and implement effective systems and governance processes to ensure future compliance.

News comes as ACMA Telstra previously published in July 2021 There are corrective actions to be taken if more than 49,000 customers are not notified of the slowdown in Internet speed, and a refund of approximately $ 25 million ($ 18.63 million) is expected.

August 2021, consumer guard dog, ACCC sued Telstra, TPG, Optus, Australia’s three largest internet telephone companies. “We made false or misleading expressions in the promotion of the 50Mbps and 100Mbps NBN plans.”

“Telstra, Optus, and TPG have each promised to notify consumers if they can’t reach the speed they’re paying for on a connection within a specific or reasonable time frame. They also promised if so. Instead, they claimed they didn’t do these things, and as a result, many consumers paid more for the NBN plan than they needed to. “Accc Chairman Rod Sims said.

However, all three telephone companies allegedly promised ACCC to indemnify consumers before the proceedings were closed.

The ACMA said Optus could file a proceeding in federal court if Optus did not meet the requirements for corrective action or if the TPG did not comply with the enforceable business.

Marina Chan


Marina Chan is based in Melbourne and focuses on Australian news. Contact her at [email protected]