Tuesday, 10 August 2021

ACCC accuses Telstra, Optus and TPG of misleading consumers over maximum NBN speeds

The ACCC's sounds pretty mad about this case which involves allegations that Telstra, Optus and TPG's made false or misleading representations in their promotions of some 50Mbps and 100Mbps NBN plans. As stated by Sims:


"We've lost patience here. And we think it should be taken to court. And we'll be seeking very high penalties."
 
I suspect the ACCC will be pressing for multi-million-dollar fines, most likely making an argument for a 10% of turnover penalties against all three respondents. These could be the biggest penalties ever ordered under the ACL if the ACCC's likely arguments on penalties are accepted by the Court.
 
There is also an issue as to whether the companies complied with their earlier undertakings: Sims said:
 
“We are very disappointed that these companies do not seem to have taken seriously the undertakings they gave to the ACCC.”
 
On the undertaking point, it seems to me that part of the blame for non-compliance falls on the ACCC for not including more rigorous reporting obligations in the undertakings and requiring that compliance with the obligations be verified by an independent reviewer. The undertakings are clearly defective in both of these respects.



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