ACCC threatens ‘high penalties’ as NBN Co admits it ‘misled customers’

NBN Co admits breaching consumer law and will reimburse early termination costs paid by consumers and businesses.

Tuesday's action is the latest from the ACCC, which has taken on Australia's telcos numerous times for false warnings to customers.

NBN Co has admitted to misleading Canberra consumers that their phone lines would be disconnected unless they moved to the NBN, according to Australia's consumer watchdog.

The ACCC alleged that between January and July 2019, NBN Co sent more than 20,000 letters to consumers and businesses in Canberra using the TransACT VDSL2 Network, declaring they needed to move to the NBN or lose their phone and internet services.

In a court enforceable undertaking announced on Tuesday, NBN Co admitted to breaching consumer law and said it would reimburse early termination costs paid by consumers and businesses that moved to the NBN 10 July 2019, and then chose to return to the TransACT Network.

It will also publish corrective notices in newspapers, Facebook and its own website, and will keep a voluntary register on its website of competing networks that will continue to operate alongside the NBN.

“It is unacceptable for NBN Co to tell consumers on other broadband networks such as the TransACT Network that moving to the NBN is their only option, when that is just not correct,” ACCC chair Rod Sims said.

“Moving to the NBN is an important decision and it can be confusing. Consumers should be able to trust that NBN Co is providing them with accurate information.

“The ACCC will not hesitate to seek high penalties in court against NBN, and other telcos, if we see this type of conduct again.”

The NBN network build is expected to be completed within weeks. Customers typically have up to 18 months after the NBN becomes available in their area before the old service is disconnected.

Tuesday's action is the latest from the ACCC, which has taken on Australia's telcos numerous times for false warnings to customers.

In December 2019, the Federal Court ordered Optus to pay $6.4m in penalties after it emailed almost 150,000 of its mobile customers, warning them that their home broadband services, provided by Optus competitors, would be disconnected “very soon”.

The email told the customers to “make the switch, before it’s too late”.

NBN Co has been contacted for comment.