The Australian Competition and Consumer Commission (the ACCC) has revealed in a recentthat TPG Internet Pty Ltd (TPG) will compensate nearly 8,000 of its customers who were misled about maximum speeds they could achieve on certain TPG NBN plans.
It is alleged that between 1 September 2015 and 30 June 2017, TPG sold NBN broadband plans advertising a range of speeds, including the top 100/40 speed tier (download speeds of 100 Mbps and upload speeds of 40 Mbps), with TPG advertising its high-speed plan as "Seriously Fast Internet. Up to 100Mbps".
TPG has admitted that by promoting and offering speed plans with maximum speeds that could not be delivered, it likely contravened the Australian Consumer Law (the ACL) by engaging in misleading or deceptive conduct and making false or misleading representations.
The ACCC Chairman, Rod Sims said:
The action affected TPG customers who purchased TPG’s fibre-to-the node (FTTN) and fibre-to the-building (FTTB) NBN plans. For example:
Thereveals that TPG customers will be contacted by 2 March 2018 with information about compensation options and the maximum speed they can achieve, with those impacted likely to be offered the chance to move to a lower-tier speed plan with a refund, or the option to exit their plan, with refunds potentially between $10 to $30 per month.
Chief Operating Officer of TPG, Craig Levy said promoting speed on the NBN had not been simple for any of the service providers:
He said further:
TPG has provided ato the ACCC detailing the action compensation it will provide to affected customers.
In a recentit was revealed that Telstra and its Belong brands have agreed to offer remedies to around 42,000 customers for promoting and offering some of its National Broadband Network (NBN) speed plans, between September 2015 and November 2017, as being capable of delivering specified maximum speeds, when those maximum speeds could not be achieved in real-world conditions.
Telstra admits that by this conduct it was likely to have contravened the ACL by engaging in misleading or deceptive conduct and making false or misleading representations and has provided a court-enforceable undertaking to the ACCC detailing the remedies it will provide affected customers, including refunds, the option to change speed plans, and exit from contracts without paying a fee.
ACCC Chairman Rod Sims said the investigation:
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