Optus has been ordered to pay AU$1.5 million in penalties by the Australian Federal Court, after having been found to make misleading representations to its fixed broadband customers about their shift to the National Broadband Network (NBN) hybrid fibre-coaxial (HFC) service.
In proceedings begun[1] by the Australian Competition and Consumer Commission (ACCC) last December, the consumer watchdog had alleged that between October 2015 and March 2017, Optus advised its customers in writing that they would be disconnected from the Optus HFC network within a specified period due to the availability of NBN in their area.
This constituted false and misleading representations, the ACCC had argued, because the timeframes it advised were shorter than those contractually permitted.
During the period between October 2015 and September 2016, Optus was also found to have misled customers about NBN plan purchase options; it "created the impression" that customers had to buy their NBN connectivity with Optus as their retail service provider (RSP).
Optus had benefited by approximately AU$750,000 due to the conduct, according to the ACCC.
"Optus pressured customers by misrepresenting the time period in which services could be disconnected," ACCC Chair Rod Sims 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."
Since the legal proceedings kicked off, Optus had compensated its customers by around AU$833,000, the ACCC said.
ACCC action against Optus saw the telco late last year also enter a court-enforceable undertaking to refund thousands