Internode and iiNet are the latest internet service providers forced to refund customers over misleading claims about internet speeds on NBN plans.
In November 2017, Telstra was forced to refund up to 42,000 customers following ACCC concerns that customers were not receiving the advertised speeds.
This week, the ACCC announced that, following its ongoing investigation, iiNet would be forced to offer remedies to over 8,000 of its customers, and a further 3,000 Internode customers would also be compensated.
Both companies are wholly owned subsidiaries of TPG Telecom.
“iiNet and Internode have admitted that between 2015 and mid-2017, they both likely engaged in misleading or deceptive conduct or made false or misleading representations by promoting and offering NBN plans with maximum speeds that could not be delivered,” ACCC commissioner Sarah Court said.
“Internet service providers must provide accurate information to customers about the speeds they can access on the NBN. Many customers could not reach the maximum speeds advertised by iiNet and Internode because their NBN connection was not capable of delivering it. Some customers couldn’t even receive the maximum limit of lower speed plans.”
According to the ACCC, affected customers of both internet service providers (ISPs) will be contacted by 27 April 2018 to advise their actual maximum speeds and explain compensation options.
“iiNet and Internode customers should carefully review any email or letter from their provider and choose a remedy as quickly as possible,” said Ms Court said.
“The options available to each customer depends on their plan, but many can move to a lower speed plan and receive a refund, or exit their plan without cost.”
Despite the action on NBN pricing, ACCC acting chair Delia Rickard said that competition is thriving in the telecommunications sector, bringing price competition to consumers and SME customers.
“Consumers are obtaining greater value for money and receiving and using more data each year,” Ms Rickard said.
“In other encouraging developments, we are seeing new players enter the fixed and wireless broadband markets and this will provide further competitive pressure going forward.”
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.