Optus to Compensate Customers for Data Shortfalls

The Australian Competition and Consumer Commission (ACCC) has accepted a court enforceable undertaking from Optus Mobile Pty Limited agreeing to compensate customers following an investigation into concerns that Optus was providing less data than advertised to consumers.

The ACCC undertaking relates to three separate incidents in 2015 and 2016 where Optus decided to reduce some of the data, calls and/or texts inclusions offered with particular Prepaid products without telling affected customers.

Optus has admitted that its conduct was likely to have contravened ss 18 and 29(1)(g) of the Australian Consumer Law (the ACL) [the ACL is contained in Sch 2 to the Competition and Consumer Act 2010 (Cth)]. See also our previous TimeBase article on Australian broadband speeds and complaints.

Background

The promotions concerned broadband modems, 2 days on us bundled with a range of phones and the prepaid phone plans My Prepaid Daily Plus, My Prepaid Monthly and My Prepaid Monthly Plus.

In one example, until 31 August 2015, Optus advertised a promotion where the customer would get 5GB data valid for 30 days when you bought a Huawei E5331 WiFi modem. From 15 October 2015, Optus advertised a new promotion for the same modem where the customer only received 2GB of data valid for 14 days. If the customer bought the modem before 31 August 2015, but did not activate the SIM card provided with the device until after 15 October 2015, the customer got 3 GB fewer data valid for less than half the period advertised.

The ACCC Commissioner Sarah Court said:

The Alleged Conduct and Remedy

The conduct occurred as a result of changes Optus made to a number of its Prepaid inclusions for consumers who bought certain prepaid mobile broadband devices, prepaid mobile phones, or prepaid mobile plans.

In some cases Optus reduced the benefits that consumers received when they activated or recharged the SIM card provided with the products. Optus failed to ensure that these changes only applied to consumers who purchased the products after the change was introduced.

After discussions with the ACCC, Optus has agreed to credit affected customers with an amount of data, calls and/or texts equivalent to the amount each consumer missed out on. Affected customers will have their accounts credited where this is possible, or can otherwise claim a refund.

To address the ACCC’s concerns, Optus provided the ACCC with a s 87B undertaking that:

• for a period of three years it will not, in trade or commerce, reduce the amount of data and/or other inclusions advertised as available upon activation of a prepaid SIM card (including a prepaid SIM card bundled with another product) unless certain conditions have been met;
• it will contact affected consumers and provide them with a credit;
• in recognition of the loss to those consumers whom Optus is unable to provide redress, Optus will donate any money it is unable to refund to an appropriate organisation to be agreed with the ACCC;
• it will publish notices in Optus and third party stores, and on the Optus website, informing affected consumers that they may be entitled to a credit; and
• it will update its compliance program and an internal staff template to ensure Optus considers its obligations under the ACL before updating or implementing similar promotions in the future.

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Optus to refund data shortfalls – sbs.com.au

Optus to compensate customers shortchanged on data, call and text inclusions – ACCC Release MR 83/17