Telstra pays out an extra $9.3 million to customers misled by premium direct billing services
TELSTRA has paid out almost $15 million to customers misled by premium phone services. This is how you can claim your share.
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AUSTRALIA’S biggest telephone carrier has paid an additional $9.3 million to customers after admitting it misled them about premium subscriptions for games and ringtones which they did not request and struggled to stop.
The ongoing saga has cost Telstra more than $20 million so far, including a $10 million penalty won by the Australian Competition and Consumer Commission earlier this year, and $5 million in initial refunds.
But the amount pales in comparison to fees collected by the carrier for third-party digital services, as it earned $61.7 million in commissions between 2013 and October 2017 from more than 2.7 million customers.
More phone carriers could also be forced to compensate wronged consumers in future as the ACCC said it was “conducting a detailed investigation into third-party billing services”.
Telstra revealed its new refund tally today after delivering the $9.3 million to 72,000 customers stung by third-party subscriptions.
READ MORE: Telstra’s record fine for misleading customers
The so-called “premium direct billing” services delivered digital content to phones, such as games, ringtones, and wallpapers.
Ongoing subscription fees were charged directly to customers’ Telstra accounts, even though many had not knowingly signed up for subscriptions, and found it difficult to stop the charges.
Complaints to Telstra about the third-party fees often topped 10,000 each month, the ACCC said, but the company did not ban them until March 3 this year.
ACCC chairman Rod Sims said the huge sum paid by Telstra reflected how widespread the issue had become, and should be a cautionary tale for other telephone carriers.
“It’s clear a large number were charged for content like ringtones and wallpapers that they did not want, did not use, and had difficulty unsubscribing from,” Mr Sims said.
“This should serve as a warning to all telecommunication providers that misleading and deceiving customers will result in serious consequences.”
Mr Sims said the Commission was also investigating third-party billing from other Australian telcos and “further enforcement action may well follow”.
Telstra has issued refunds to customers who lodged complaints with the company directly or with the Telecommunications Industry Ombudsman.
Other Telstra customers can still apply to get their fees returned, however, by phoning 1800 007 763 for postpaid billing, 1800 007 413 for prepaid bills, and 1800 007 830 for business customers.
Originally published as Telstra pays out an extra $9.3 million to customers misled by premium direct billing services