Optus and TPG have been ordered to refund millions to the customers after failing to inform them of under-delivering internet speeds. 

Optus Internet Pty Limited and TPG Internet Pty Ltd have issued refunds of more than $4.4 million and $2.1 million, respectively, for failing to suitably notify tens of thousands of consumers that the maximum speeds advertised in their internet plan were not attainable on the NBN infrastructure available to them.

In July 2021, Optus self-reported that over a two-year period, it had failed to inform more than 34,000 customers that they were not receiving the level of service they had purchased.

In October 2021, TPG advised the Australian Communications and Media Authority (ACMA) that it had failed to provide more than 4,400 customers with the notifications required.

Under ACMA rules, telcos must verify maximum internet speeds when migrating customers to the NBN and notify them when speeds cannot meet those that were originally advertised to them.

As a result of these breaches, the ACMA issued Optus with a remedial direction. TPG offered a court-enforceable undertaking to the ACMA, which it has accepted.

ACMA Chair Nerida O’Loughlin says that when telcos cannot deliver the internet speeds advertised in a plan, customers are entitled to move to a cheaper, lower-speed plan or exit the contract at no cost.

“Optus and TPG were charging these people for internet speeds they could not get,” Ms O’Loughlin said.

“These customers were left in the dark and denied the option to move to a cheaper contract or walk away.”

Under its remedial direction, Optus is required to commission an independent audit of its relevant compliance systems and implement effective systems and governance processes to ensure future compliance.

Under its enforceable undertaking, TPG is required to commission an independent audit of its relevant compliance systems as well as implement effective systems and governance processes to ensure future compliance.

In June 2021, the ACMA issued Telstra with a remedial direction for similar issues.

“The scale of service failure by these companies is significant. Our actions will ensure the top three telcos are more vigilant delivering the internet service their customers expect and have paid for,” Ms O’Loughlin said.