TPG has joined a growing list of internet service providers to announce customer refunds following complaints of misleading advertising regarding internet speeds.
The telco admitted it had likely breached the Australian Consumer Law by misleading or deceiving customers by advertising its high-speed internet package as “seriously fast internet. Up to 100Mbps” – the slogan as used between September 2015 and June 2017.
As part of undertakings to the ACCC, TPG will compensate close to 8,000 of its customers. Refunds for eligible customers will amount to between $10 and $30 for every month they paid for the plan.
“The technical limitations of NBN’s fibre to the node technology meant many TPG customers could not reach the advertised 100/40 speeds they paid for. Some couldn’t even get half those advertised speeds,” said ACCC Chairman Rod Sims.
“TPG charged customers higher prices for the promise of faster speeds, misleading many customers into paying a premium price for a service they could not get.”
“This is the third major internet provider we have taken action against in the past few weeks. Internet service providers must take responsibility to ensure that their customers get the promised speeds that they pay for.”
TPG also announced it had adjusted its pricing and published typical speeds customers can expect during the peak evening period of 7pm to 11pm.
“At this time, we’ve been conservative with our typical evening speeds. We expect that our typical evening speed values will increase when we have more data recorded as per ACCC guidelines,” said TPG chief operating officer Craig Levy.
The NBN has faced harsh criticism for not living up to promised internet speeds, prompting the ACCC to announce a crackdown on deceptive and misleading advertising of speeds.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.