Telecom Company Fined Millions for Deceiving Customers About Internet Speed

An Australian telecommunications company has been fined a substantial amount for misleading its customers regarding internet speed. The company, known as Telstra, was penalized approximately $11.87 million USD (₹98.52 crore) by the court. The issue arose from the company’s actions related to internet plans, where it promised high-speed internet to its customers. The company was found to have reduced the internet speed of almost 9,000 customers without their knowledge. The Australian Competition and Consumer Commission (ACCC) revealed that Telstra, through its low-cost brand Belong, migrated 8,897 customers to lower-speed plans. This change included halving the upload speed of their internet service. The regulator noted that this migration occurred between October and November 2020. The commission stated that Telstra’s failure to inform customers about the change in their broadband service denied them the opportunity to assess whether the altered internet speed met their needs.