Slow nbn speeds could attract refund

Wednesday, 23 January, 2019

Slow nbn speeds could attract refund

nbn customers who have experienced slow connection speeds are encouraged to seek a refund.

According to the ACCC, customers should contact their retail service provider (RSP) as they may be eligible for a refund following undertakings it has negotiated with RSPs over the last 15 months.

Telstra, Optus, TPG, iiNet, Internode, Dodo, iPrimus and Commander have each admitted that they likely made false or misleading representations about the connection speeds nbn customers with fibre-to-the-node (FTTN) and fibre-to-the-building (FTTB) connections could experience.

These RSPs advertised and sold nbn plans with maximum theoretical speeds (such as 100 Mbps download and 40 Mbps upload) when, due to the limitations of FTTN and FTTB technologies, many consumers could never experience these speeds.

Since November 2017, the ACCC has accepted undertakings from each of these eight RSPs that they would contact more than 142,000 affected consumers to offer them a range of options, such as moving to a lower speed plan of their choice, or exiting their contract and receiving a refund.

“A large proportion, two in three affected consumers, have not responded to the letter or email from their RSP. They may be eligible for refunds, some in the hundreds of dollars,” ACCC Acting Chair Mick Keogh said.

“The ACCC is urging nbn customers to contact their nbn retailer if they have received a letter or email offer of a remedy, or think they might be entitled to a remedy.”

Customers who have recently signed up to a new nbn plan may also be eligible for a refund where the RSP advertises maximum connection speeds with the plan. Within four weeks, RSPs must check their speeds and if the speeds are below that advertised for the plan the consumer chose, the RSP must offer remedy options.

“Our message to RSPs is that if you advertise a particular connection speed and customers cannot experience that speed, you risk breaching the Australian Consumer Law,” Keogh said.

“We expect RSPs to provide consumers with accurate information up front about the internet speeds they can expect to experience, and then deliver on those promises.”

Image credit: ©alphaspirit/Dollar Photo Club

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