Australian Telecom Faces Hefty Fine for Misleading Internet Speed Promises

A major telecommunications provider in Australia has been hit with a significant fine due to deceptive practices related to internet plans. The court imposed a penalty of around $11.87 million USD on the company. The core of the issue was the company’s failure to deliver the promised internet speeds to its customers. The company was found guilty of secretly reducing the internet speeds for approximately 9,000 customers. The ACCC reported that Telstra, under its budget brand Belong, moved 8,897 customers to plans with slower speeds. This resulted in a reduction of the upload speed by half. This action by the company took place in late 2020. The ACCC highlighted that Telstra did not inform its customers about these changes, which prevented them from making informed decisions about their internet service. In addition to the fine, Telstra has committed to providing compensation to affected customers.