NBN telemarketers are lying to consumers, threatening disconnection and penalties

Australians are being lied to and threatened with disconnection by unscrupulous NBN telemarketers, a shock investigation has revealed.

Unscrupulous telemarketers are lying to consumers about the NBN and threatening to disconnect their phone and internet services unless they sign up to new plans “they don’t want or need,” an investigation has revealed today.

More than 1700 Australian consumers and businesses reported high-pressure sales tactics and lies to the Telecommunications Industry Ombudsman last year, forcing the authority to issue a warning to telcos about the unfair practice and refer one telco to the regulator for possible enforcement action.

But telecommunications consumer advocates said the issue was more widespread than complaints indicated, and ruthless businesses could keep exploiting confusion about moving to the National Broadband Network.

The TIO report, Misleading Telemarketing of NBN Services, revealed consumers and businesses lodged 1729 complaints about the practice in 2018, in a trend that continued this year.

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Ombudsman Judi Jones says consumers are being told information about moving to the NBN that is “simply not true”.

The reports included telemarketers threatening to disconnect consumers’ phone and internet services, warning of non-existent reconnection fees, lying about costs, and pressuring people to sign up to plans they did not understand.

Ombudsman Judi Jones said in one case a telemarketer told a 76-year-old woman she had “no choice” about signing up to an $80 monthly broadband plan even though she did not use the internet.

“Consumers are being told information about moving to the NBN that is simply not true and puts them at a disadvantage,” Ms Jones said.

“If the consumer is feeling pressured by a telemarketer, it is fine to hang up.”

Ms Jones , referred another to the Australian Communications and Media Authority, and welcomed news that the Communications Alliance was in discussions with ACMA to provide more education to its members.

Telecommunications Industry Ombudsman Judi Jones says her office reviewed and made changes at one telco.

But Australian Communications Consumer Action Network chief executive Teresa Corbin said misleading NBN sales calls “were happening to more people than actually complain about it” and “further enforcement action may be needed” to stem the practice.

Ms Corbin said there was a lot of confusion about switching telecommunication services to the NBN, and unscrupulous telcos were exploiting at-risk groups, including older customers.

“The whole situation is rife for consumers to be confused and misled by telemarketing calls,” she said.

“People are terrified of not having a service and they are vulnerable to pressure tactics.”

Australian households typically have 18 months after the NBN becomes available in their area to switch their phone and internet services to it, she said, and consumers could check their disconnection date on the NBN’s website or by phoning their current service provider.

Broadband users should also request a critical information summary from any plan they sign up to over the phone, she said, and realise that “if you’re being pressured, you can rest assured that there is a better deal out there”.

The TIO report arrived one day after Telstra chief executive Andy Penn criticised the NBN for setting “high” wholesale broadband prices that he said were leaving customers at a disadvantage and could see them connect to the “wrong technology”.