ACCC takes Telstra to Federal Court for ‘misleading’ customers

Australia’s competition regulator suing Telstra in the Federal Court for allegedly misrepresenting internet speeds to customers of its cut-price brand, Belong.

The ACCC alleges that Australia’s largest retailer of telephone and data services, Telstra, made misleading or false representations about upload speeds to residential broadband customers of Belong.

The ACCC has instituted Federal Court action against Telstra for allegedly misleading consumers.Credit:AFR

In a statement put out by the ACCC, they claim that Telstra migrated nearly 9000 customers who were on a Belong NBN plan with a maximum download speed of 100 megabits per second (Mbps) and a maximum upload speed of 40Mbps, to a service with a maximum upload speed of 20Mbps.

“We allege 8,897 consumers who signed up to a Belong NBN plan between May 2017 and October 2020 were affected by this change and deprived of the opportunity to make an informed decision about their internet service,” Carver said.

About 2500 customers were provided with a one-off $90 credit in March and April 2021 after Telstra acknowledged the failure, however the ACCC alleges that many customers are yet to be informed that their plan has changed.

“We allege that more than 6,300 Belong customers have still not been informed by Telstra that their plan has changed to a lower maximum upload speed, and that Telstra continues to represent to them that the Belong broadband service supplied to them has not been altered,” Ms Carver said.

“In these circumstances, we are seeking a Court order requiring Telstra to pay compensation to consumers who, we allege, did not get the service they signed up for.”

More to come

Most Viewed in Business

Source: Read Full Article