Telstra Fined USD 18 Million for Misleading Internet Customers
- tech360.tv
- Oct 6
- 2 min read
Australia’s Federal Court has fined Telstra USD 18 million and ordered it to pay more than USD 2.3 million in compensation for misleading 8,897 customers of its budget internet provider, Belong. The telecommunications company moved these customers to lower-speed NBN plans in late 2020 without informing them.
While the new plan maintained the same maximum download speed, the maximum upload speed was halved from 40 megabits per second to 20 megabits per second. Customers were not notified of this significant change to their service.
In addition to the fine, Telstra must repay $15 to each affected customer for every month they were on the reduced-speed plan. This compensation totals more than USD 2.3 million, addressing the financial impact on the customers.
ACCC Commissioner Anna Brakey stated, “The USD 18 million penalty sends a strong message to all businesses that they cannot mislead consumers by making changes to key aspects of a service without informing customers of those changes.”
Brakey further noted, “Telstra’s failure to inform customers that their broadband service had been changed denied them the opportunity to decide whether the changed service was suitable for their needs.”
She highlighted that misleading pricing and claims concerning essential services, with a particular focus on telecommunications, are among the ACCC’s current enforcement priorities.
The ACCC took Telstra to court in Dec. 2022. The Federal Court found the company breached consumer law in Feb. this year.
The court ordered Telstra to cover a portion of the consumer watchdog's legal costs. Telstra launched Belong in 2013 as its low-cost internet and mobile service provider.
Telstra was fined $18 million by Australia’s Federal Court.
The company must pay more than $2.3 million in compensation to 8,897 Belong customers.
Customers were moved to lower-speed NBN plans with halved upload speeds without notice.
Source: 9 NEWS
