Optus slammed with penalty worth $1.5 million after it misled its consumers!

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Optus slammed with penalty worth $1.5 million after it misled its consumers!

On June 28, 2018, Posted by , In News, With No Comments

The Federal Court of Australia has slammed Optus with $1.5 million fine after it was found misleading its users regarding National Broadband Network service options. The whooping amount of fine has only been slammed after the Australian Competition and Consumer Commission launched legal action in December.

The court proceeded with the legal action after it identified Optus misleading 14000 customers about their disconnection from service if they didn’t switch from their regular service options to NBN within 30 days. The telco also had deceived its users to signup for the Optus NBN service while selecting their internet service provider.

From such act, Optus claimed to have reaped in $750000 from October 2015 to March 2017. Rod Sims ACCC Chairman on the deceitful act said, “Businesses should not make false representations which distort customers’ decision making. This is particularly important when many Australians are moving to the NBN for the first time. It is illegal for businesses to mislead their customers and create a false impression through their communications. Today’s penalty serves as a warning to all businesses that such behaviour will be met with ACCC action.”

Previous year Optus had to compulsory pay off 8700 customers after the network provider charged customers for the download speed which was higher than the actual offered. Sim said, “This is very bad behaviour by the retailers. They should have been warning their customers. They, more importantly, should have been checking and working out whether they were selling something they couldn’t deliver.”

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