Wednesday, 23 May 2018 10:35

Optus fined $1.5 million for misleading customers over NBN transition Featured

By

Optus has been fined $1.5 million in the Federal Court for misleading customers by telling them their services would be disconnected if they did not move from its HFC network to the national broadband network.

Optus told 14,000 of its customers, during the period from October 2015 to March 2017, that their Internet services would be disconnected — in as little as 30 days in some cases — unless they transitioned to an NBN plan.

The company took the action despite the fact that under the terms of its contract it could not force disconnection within the timeframe it claimed.

Optus also made misleading representations to customers that they had to sign up to Optus’ NBN services, when they could have chosen any Internet service provider.

Optus was entitled to receive migration payments from NBN Co for each of its customers that moved from the Optus HFC network to an NBN-based service, and obtaining payments became part of Optus’ annual financial targets and was referred to by Optus as “bounty”.

The competition watchdog — the Australian Competition and Consumer Commission — instituted proceedings against Optus in December 2017.

Optus benefited by around $750,000 as a result of the conduct and, since the ACCC investigation started, the company has paid $833,000 in compensation to affected customers.

“Optus pressured customers by misrepresenting the time period in which services could be disconnected,” ACCC chairman Rod Sims said.

“Businesses should not make false representations which distort customers’ decision making.  This is particularly important when many Australians are moving to the NBN for the first time.

“It is illegal for businesses to mislead their customers and create a false impression through their communications. Today’s penalty serves as a warning to all businesses that such behaviour will be met with ACCC action.”

Optus has acknowledged in a written statement issued on Wednesday that the issue over customers being disconnected was wrong and should not have occurred. It also notes that the issue is an historic one and has now been rectified.

“Optus has written to affected customers apologising for this error and offering compensation to customers that had been disconnected without sufficient notice. Optus has also established a revised set of migration processes for its cable customers that we believe will deliver customers the migration experience they expect,” a spokesperson said.

“Optus aims for a seamless experience for customers transitioning to NBN. However, during this process, we provided some customers with insufficient notice of their options to migrate and some customers were disconnected before they migrated to the NBN.

“In response to industry changes driven by the NBN, Optus is transforming its fixed business from being an infrastructure provider to a services reseller. In late 2016, we made the decision to proactively migrate customers off Optus’ cable network to the NBN as soon as an area becomes serviceable.”


Subscribe to ITWIRE UPDATE Newsletter here

Active Vs. Passive DWDM Solutions

An active approach to your growing optical transport network & connectivity needs.

Building dark fibre network infrastructure using WDM technology used to be considered a complex challenge that only carriers have the means to implement.

This has led many enterprises to build passive networks, which are inferior in quality and ultimately limit their future growth.

Why are passive solutions considered inferior? And what makes active solutions great?

Read more about these two solutions, and how PacketLight fits into all this.

CLICK HERE!

WEBINAR INVITE 8th & 10th September: 5G Performing At The Edge

Don't miss the only 5G and edge performance-focused event in the industry!

Edge computing will play a critical part within digital transformation initiatives across every industry sector. It promises operational speed and efficiency, improved customer service, and reduced operational costs.

This coupled with the new capabilities 5G brings opens up huge opportunities for both network operators and enterprise organisations.

But these technologies will only reach their full potential with assured delivery and performance – with a trust model in place.

With this in mind, we are pleased to announce a two-part digital event, sponsored by Accedian, on the 8th & 10th of September titled 5G: Performing at the Edge.

REGISTER HERE!

BACK TO HOME PAGE
Peter Dinham

Peter Dinham - retired and is a "volunteer" writer for iTWire. He is a veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

Share News tips for the iTWire Journalists? Your tip will be anonymous

WEBINARS ONLINE & DEMAND

GUEST ARTICLES

VENDOR NEWS

Guest Opinion

Guest Interviews

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News

Comments