(Reuters) – Australia’s federal court has ruled that telecom firm Telstra misled customers about the downgrading of its broadband plan’s upload speed. The country’s competition regulator said this on Friday.
Telstra’s Alleged Deceptive Practices
The Australian Competition & Consumer Commission (ACCC) launched a legal action against Telstra in December 2022. ACCC’s lawsuit accused the company of silently reducing the upload speed for roughly 9,000 residential customers in October and November 2020, while maintaining the same price for the service.
Impact on Customers
According to ACCC Commissioner Liza Carver, this alteration prevented customers from choosing whether the degraded service met their needs.
ACCC’s Demands
The ACCC is now pursuing penalties, compensation for affected customers, and other measures in court. The final outcomes and sanctions have yet to be determined and will be announced at a future date.
ACCC’s Criticism of Telstra
ACCC Commissioner Liza Carver expressed expectations for industry standards to be upheld by Telstra, being the largest retail broadband internet service provider in the country. She stated strong belief that customers deserve fair treatment, including compensation for unintended service alterations.
Telstra’s Response
At the time of reporting, Telstra did not provide a comment or statement on the ruling.
Broader Implications for Consumer Rights
This ruling sets a precedent for protecting consumer rights in terms of transparent communication regarding service changes. Customers across Australia can be reassured that they are not alone in facing such issues and that regulators are actively working to enforce compliance with consumer protection laws.
Call to Action
This case highlights the importance of informed consent for service alterations and the need for transparent practices from telecommunications providers. We invite you to share your thoughts on this ruling and discuss the implications for consumer rights. Comment below, subscribe to our newsletter to stay updated on similar developments, or share this article on social media to spread the word.
(Reporting by Himanshi Akhand in Bengaluru; Editing by Sherry Jacob-Phillips)