Money
Who will get the $25 million refund from Telstra?
Australia’s largest telco Telstra will refund a huge $25 million dollars to its customers
Regulators have ordered Telstra to refund almost 50-thousand customers over failed internet speeds.
An ACMA investigation found between September 2018 and October 2020 the telco failed to suitably notify customers of issues. These issues included under-performing internet speeds and plan options.
Under ACMA rules, telecommunication companies must verify maximum internet speeds. They also must notify customers when speeds cannot meet those advertised in their plan.
In those circumstances, customers are entitled to move to a lower speed tier plan at a cheaper price or exit the contract without cost.
“The ACMA is very concerned with this conduct as these customers have been paying for a level of service they were not receiving,”
ACMA chair Nerida O’Loughlin said in a statement
The ACMA expects Telstra to dish out around $25 million in refunds. However, that figure includes other cases not included in the watchdog investigation.
“Telstra denied these customers the opportunity to downgrade their plan or exit their contract.”
Telstra must also implement a range of processes and reporting to assure future compliance with ACMA rules. The Aussie telco faces additional penalties of up to $10 million if it doesn’t comply with the direction.