Optus fined for NBN disconnection messages it says were ‘mistakenly’ sent

Almost 140,000 customers were “mistakenly” sent a message about their internet being disconnected. And it’s turned out to be a costly error.

Australia’s second biggest telco has been fined millions by the consumer watchdog after “mistakenly” telling customers they needed to switch to the national broadband network before they had to.

In May last year, Optus sent 138,988 messages to its mobile customers telling them their existing home broadband connections with competitor companies would be “disconnected very soon”, and they should switch to an Optus NBN plan “before it’s too late”.

The Australian Competition and Consumer Commission (ACCC) took Optus to court in June of this year, and last week the Federal Court ruled this statement was misleading or deceptive and handed down a $6.4 million fine.

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“We took this case against Optus because we were concerned its emails created a false sense of urgency for consumers and may have discouraged them from shopping around for the best deal available,” ACCC chair Rod Sims said.

Mr Sims said it was a worrying trend for Optus, which has faced action by the watchdog five times in the past decade, including twice in the past two years.

Optus has been fined by the ACCC for the second time in two years.

Optus was fined $1.5 million last year for telling about 14,000 customers on its Hybrid Fibre Coaxial network they would need to switch to NBN. The company also got in trouble for telling customers they had to sign up to an Optus NBN service when they could choose any provider.

“We are concerned about Optus’ recent track record in misleading consumers about the NBN. We expect that this $6.4 million penalty will serve as a warning to Optus and other telcos that they must not mislead consumers about their choices when the NBN is being rolled out,” Mr Sims said.

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An Optus spokesperson told news.com.au the messages, which will end up costing the telco around $46 each, were sent “mistakenly”.

“Optus co-operated with the ACCC throughout this process and we reaffirm our apology to customers who received the mistaken communication in 2018. We have already offered a costless exit for those customers who took up the offer,” the spokesperson said.

“Optus is committed to improving customer experience and customer service across our business, and we continue to devote energy and resources to deliver great service to all our customers”.

You can check if the NBN is available in your area and how long you have to connect via the NBN Co website.

The company in charge of building the NBN doesn’t comment on the marketing or business practices of the retail service providers that purchase access to it, but a spokesperson told news.com.au prospective customers could check its website to fact-check information about access and disconnection.

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“Customers are encouraged to use the ‘check your address’ function on the NBN website. This tool specifies if the premises can connect while also showing the disconnection date for that area and premises, once that date has been confirmed,’ the spokesperson said.

You generally have 18 months to connect to the NBN once it becomes available in your area.

Do you think Optus should have been fined more or is $6.4 million too harsh? Have your say in the comments below.