Telstra has decided to offer compensations to 42,000 customers for failing to offer the National Broadband Network speeds they promised. The company has prompted an alert to Australian Competition and Consumer Commission and said over 9,000 of its customers on two of its plans could not receive speeds above a lower-speed plan.
The company has now announced it will compensate to customers who purchased internet services through both Telstra and Belong brands between September 2015 and November. It also said it may have breached consumer law by promoting NBN speeds that it was not capable of delivering.
One of the affected services was a “Super Fast Speed Boost” plan, which advertised maximum download speeds of up to 100 megabits per second and maximum upload speeds of up to 40 Mbps (100/40 Mbps).
ACCC chairman Rod Sims said Telstra has admitted that there customers were paying more to receive higher speeds that they just weren’t able to get. He also said Telstra is co operative and will issue refunds as soon as possible.
“All businesses have a responsibility to ensure that claims about the performance of their products or services are accurate,” — he said.
He also said he is pleased that Telstra has taken the initative and reported them problem to ACCC and he is also aware that this is not just a problem for Telstra.
“We are pleased that Telstra proactively reported this serious problem to the ACCC and has cooperated in creating a remediation plan for affected customers,” – he saidsaid.
“We will continue to investigate other retail service providers selling broadband plans over the NBN and take enforcement action where appropriate.”– he said.
The customers can now recieve refunds on four different ways like costless exit from their contract and a refund, moving to a different speed plan and receiving a refund, or remaining on their current plan and not receiving a refund.