- Optus forced to compensate 8700 NBN users after misleading them on speeds, ACCC says
- By Jennifer Dudley-Nicholson
- 01/01/2018 Make a Comment
- Contributed by: Pina ( 12 articles in 2018 )
AUSTRALIA’S second largest internet provider will be forced to compensate more than 8700 customers after charging them for download speeds they could not possibly receive over the National Broadband Network.
In more than 370 cases, Optus slugged users for the fastest available NBN download speeds, of 100 megabits per second, yet only delivered one quarter of those speeds — the minimum promised under the NBN.
The Australian Competition and Consumer Commission revealed the latest NBN customer gaffe today after last month forcing Telstra to compensate more than 42,000 of its NBN customers over the same issue.
But ACCC chairman Rod Sims said Optus’ case was particularly egregious as many customers were not just being overcharged by a small margin, but for two speed tiers above what their NBN connection could deliver.
“Worryingly, many affected Optus fibre-to-the-node customers could not even receive the maximum speed of a lower tier plan,” he said.
“This is very bad behaviour by the retailers. They should have been warning their customers. They, more importantly, should have been checking and working out whether they were selling something ... they couldn’t deliver.”
More than one in five Optus customers connected to its to its ”Boost Max” NBN plan offering 100 megabit per second downloads could only receive half that speed, for example, and a further four per cent of customers — 382 users — could only receive a quarter of that speed or less.
Even 266 users on Optus’ 50 megabit-per-second NBN plan could only receive half that download speed or less.
An Optus spokesman said the company was working with the ACCC to rectify the issue and would offer remedies to affected customers by March 2.
“Optus acknowledges that it did not have the appropriate procedures in place to confirm the speed of the NBN service at the time of purchase by affected customers,” the spokesman said.
“We apologise to customers who have been affected by this error and are putting a process in place to rectify this issue.”
Overcharged Optus customers will be offered refunds, discounted plans, and the option to exit their contract without fees.
Optus will also be forced to check whether new customers can receive the download speeds for which they are being charged within four weeks of connecting to an NBN plan.
Mr Sims said the new court-enforceable ruling against an Australian internet service provider was another step towards “ensuring that consumers get what they pay for” but warned it may not be the last ruling of its kind.
“We are continuing to investigate other retail service providers selling NBN broadband plans, and will take enforcement action if we consider that they are not delivering on their promises to customers,” he said.
Mr Sims said the ACCC would also publish a “league table” of the best and worst performing NBN providers early next year to help consumers make informed choices.
Originally published as Optus ‘misled’ 8700 NBN users
In more than 370 cases, Optus slugged users for the fastest available NBN download speeds, of 100 megabits per second, yet only delivered one quarter of those speeds — the minimum promised under the NBN.
The Australian Competition and Consumer Commission revealed the latest NBN customer gaffe today after last month forcing Telstra to compensate more than 42,000 of its NBN customers over the same issue.
But ACCC chairman Rod Sims said Optus’ case was particularly egregious as many customers were not just being overcharged by a small margin, but for two speed tiers above what their NBN connection could deliver.
“Worryingly, many affected Optus fibre-to-the-node customers could not even receive the maximum speed of a lower tier plan,” he said.
“This is very bad behaviour by the retailers. They should have been warning their customers. They, more importantly, should have been checking and working out whether they were selling something ... they couldn’t deliver.”
More than one in five Optus customers connected to its to its ”Boost Max” NBN plan offering 100 megabit per second downloads could only receive half that speed, for example, and a further four per cent of customers — 382 users — could only receive a quarter of that speed or less.
Even 266 users on Optus’ 50 megabit-per-second NBN plan could only receive half that download speed or less.
An Optus spokesman said the company was working with the ACCC to rectify the issue and would offer remedies to affected customers by March 2.
“Optus acknowledges that it did not have the appropriate procedures in place to confirm the speed of the NBN service at the time of purchase by affected customers,” the spokesman said.
“We apologise to customers who have been affected by this error and are putting a process in place to rectify this issue.”
Overcharged Optus customers will be offered refunds, discounted plans, and the option to exit their contract without fees.
Optus will also be forced to check whether new customers can receive the download speeds for which they are being charged within four weeks of connecting to an NBN plan.
Mr Sims said the new court-enforceable ruling against an Australian internet service provider was another step towards “ensuring that consumers get what they pay for” but warned it may not be the last ruling of its kind.
“We are continuing to investigate other retail service providers selling NBN broadband plans, and will take enforcement action if we consider that they are not delivering on their promises to customers,” he said.
Mr Sims said the ACCC would also publish a “league table” of the best and worst performing NBN providers early next year to help consumers make informed choices.
Originally published as Optus ‘misled’ 8700 NBN users
Source: https://www.heraldsun.com.au/technology/optus-forced-to-compensate-8700-nbn-users-after-misleading-them-on-speeds-accc-says/news-story/deb0b2268f9747cbfb2416c86f9b76ba
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