Australian Telecom Giant Fined for Deceptive Internet Speed Practices

An Australian telecommunications company is facing a massive fine for its deceptive practices related to its internet plans. The court has imposed a fine of around $11.87 million USD. This penalty was levied due to the company’s failure to deliver the promised high-speed internet to its customers. Specifically, the company was found to have reduced the internet speeds of approximately 9,000 customers without notifying them. According to the ACCC, Telstra, through its low-cost brand Belong, migrated 8,897 customers to plans with slower speeds, which included a reduction in upload speed. The changes were implemented in late 2020. The ACCC noted that Telstra’s lack of transparency denied customers the opportunity to assess whether the altered internet speed was adequate for their needs. The company is now committed to either compensating all affected customers or providing them with a credit or payment. The investigation of telecom companies in Australia is now under scrutiny due to the recent emergency call failures by Optus.