Thursday, 03 June 2021 00:56

Telcos Dodo, iPrimus hit with hefty penalties for misleading claims on NBN broadband speeds Featured

By Staff Writer

Telcos Dodo and iPrimus have been ordered to pay $1.5 million and $1 million respectively in penalties for making misleading claims about their NBN broadband speeds.

The penaties were imposed by the Federal Court following an investigation by the Australian Competition and Consumer Commission (ACCC).

The ACCC said in a statement on Wednesday that Dodo and iPrimus admitted that their ‘typical evening speed’ claims made between March 2018 and April 2019 were misleading because they were not based on an appropriate testing methodology.

“Accurate information about broadband speeds, particularly during the busy period when consumers are most likely to use their services, is essential for consumers to be able to compare broadband offers and pick the best service for their needs,” ACCC Chair Rod Sims said.

“The ACCC brought this case because we were concerned that the methodology which the Vocus Group used as the basis for its speed claims cherry-picked only the fastest speeds its network could deliver, and ignored the slower speeds many of its customers experienced.”

“These misleading speed claims meant consumers could not accurately compare different offerings and make an informed choice about their broadband provider,” Sims said.

The ACCC says that under the Australian Consumer Law, service providers must not make false or misleading representations about the performance characteristics of their services - and representations about future matters are misleading if they are not based on reasonable grounds.

Over recent years, the ACCC says it has worked to facilitate much improved consumer outcomes through its Measuring Broadband Australia Program, the provision of its Broadband Speed Claims guidance, and taking enforcement action against a range of providers.

“Despite clear ACCC guidance on making broadband speed claims, Vocus Group used a flawed methodology which was inconsistent with that guidance, and misled consumers about the speeds of its plans,” Sims said.

The ACCC notes that when considering the appropriate penalties to be imposed, Justice Murphy said that through their parent company Vocus, Dodo and iPrimus “chose not to adopt the methodology proposed as industry best practice by the ACCC and instead developed and applied the Vocus Methodology, which as it eventuated had a number of deficiencies”.

And he added: “That is material to the penalties imposed.”

Dodo and iPrimus co-operated with the ACCC’s investigation, admitted liability and agreed to make joint submissions to the Court in relation to penalties and other orders. 

Subscribe to ITWIRE UPDATE Newsletter here


The much awaited iTWire Shop is now open to our readers.

Visit the iTWire Shop, a leading destination for stylish accessories, gear & gadgets, lifestyle products and everyday portable office essentials, drones, zoom lenses for smartphones, software and online training.

PLUS Big Brands include: Apple, Lenovo, LG, Samsung, Sennheiser and many more.

Products available for any country.

We hope you enjoy and find value in the much anticipated iTWire Shop.



iTWire TV offers a unique value to the Tech Sector by providing a range of video interviews, news, views and reviews, and also provides the opportunity for vendors to promote your company and your marketing messages.

We work with you to develop the message and conduct the interview or product review in a safe and collaborative way. Unlike other Tech YouTube channels, we create a story around your message and post that on the homepage of ITWire, linking to your message.

In addition, your interview post message can be displayed in up to 7 different post displays on our the site to drive traffic and readers to your video content and downloads. This can be a significant Lead Generation opportunity for your business.

We also provide 3 videos in one recording/sitting if you require so that you have a series of videos to promote to your customers. Your sales team can add your emails to sales collateral and to the footer of their sales and marketing emails.

See the latest in Tech News, Views, Interviews, Reviews, Product Promos and Events. Plus funny videos from our readers and customers.


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




Guest Opinion

Guest Interviews

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News