Optus cops $6.4m fine for misleading NBN claims

Optus has been fined for the second time in two years for misleading customers it was trying to sign up to NBN plans.

Optus has been issued another fine for misleading customers it was trying to sign up to NBN plans.

Optus has copped a $6.4 million fine for sending misleading NBN disconnection claims to over 130,000 customers, following proceedings brought by the Australian Competition and Consumer Commission in June.

This is the second time in two years Optus has been penalised for trying to get customers to sign up to its NBN plans using faulty information.

Having already paid a $1.5m fine in 2017 for a similar infraction, Optus was taken to task by the competition regulator this year for trying to churn customers from rival telcos by giving them false information about service disconnections.

According to the ACCC, Optus emailed 138,988 of its own mobile customers in May claiming their existing home broadband services, provided by Optus’ competitors, would be “disconnected very soon”.

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The email encouraged the customers to change to Optus NBN Broadband, telling them to “make the switch, before it’s too late”.

According to the Federal Court, the statement was misleading or deceptive because the customers who received the email were not facing immediate disconnection of their existing broadband services.

While consumers have to give up their existing services and move to the NBN, they have 18 months to make the migration once a neighbourhood is declared ready receive NBN services.

The forced migration of consumers offer telcos a chance to steal customers from each other and ACCC boss Rod Sims said he was particularly concerned by Optus’ track record.

“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.”

“As the NBN rollout nears completion, consumers around Australia are making decisions about whether and when to move onto the NBN, and what services are best for them.”

“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 added.