Australia fines Telstra $12 Million for consumer law breaches

Australia fines Telstra $12 Million for consumer law breaches

New Delhi: Australia’s largest telecommunications company, Telstra, has been hit with an A$18 million fine in the US, which will be $11.87 million, by the Federal Court for downgrading the internet speed plans of nearly 9,000 customers without notice. The penalty was announced on October 3 by the Australian Competition and Consumer Commission, the country’s competition watchdog. But there are many people who don’t even know why they have been fined by this company. According to some reports, the ACCC found that Telstra migrated 8.897 customers of its low-cost brand, who belonged to a slower service plan, during October and November 2020.

The company also stated that they have failed to inform their customers that their maximum upload speed has been halved. Telstra’s failure to notify customers that their broadband service had been changed denied them the opportunity to decide whether the changed service was suitable for their needs. The Australian Competition and Consumer Commission also noted that Telstra has either already compensated or committed to compensating all affected customers. Remediation includes a credit or payment of A$15 for each month they were on the lower upload speed plan.

A company spokesperson stated to some sources that Telstra has accepted the court’s findings and is in the process of completing remediation for the final group of affected customers. This fine comes as the Australian telecom firm faces intense regulatory scrutiny, particularly following the rival Optus’s two separate emergency call outages last month, one of which was linked to four deaths. This is all thing they was happened in Australia; for this reason, they have been fined.

Punit Panchal
Senior Editor

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