40,000 Aussies get $6.5 million refunds from telcos

Optus $Singtel (Z74.SG)$ and TPG $TPG Telecom Ltd (TPG.AU)$ have stated in 2021 that they did not notify customers that the internet speeds they were being charged for were not achievable on the infrastructure. Under the Australian Communications and Media Authority (ACMA), telcos must verify maximum internet speeds and notify customers when they cannot meet their advertised speeds. In addition to this, customers have the right to switch to a cheaper, lower-speed plan or exit the contract for free when the telco cannot deliver the internet speeds advertised in the plan.

Optus and TPG have now issued refunds over $6.5 million to affected customers. In June 2021, the ACMA issued Telstra $Telstra Group Ltd (TLS.AU)$ a remedial direction for similar issues.

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