Telstra to pay refunds over excess data charges

Telstra will pay more than 150,000 customers refunds over excess data charges.

Telstra says it failed to notify users of some mobile broadband products that they would be hit with excess usage charges. Picture: Bruce Long

Telstra has been forced to issue refunds to more than 150,000 mobile broadband customers after slugging them with excess data charges, in breach of the Telecommunications Consumer Protections (TCP) Code.

According to the Australian Communications and Media Authority (ACMA), Telstra had failed to warn the affected customers about their excess data usage through appropriate notifications, leading them to pay extra charges.

Telstra self-reported to breach, which had transpired between September 2013 and May 2019, to ACMA.

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According to the telco, a system error had led to it sending some mobile broadband data usage alerts via SMS to people without sms-compatible devices, like tablets and 4G dongles, leaving these customers in the dark about how much data they were using.

“We let the ACMA know once we understood the nature and scale of the issue, and the system has been updated to send these alerts via email,” a Telstra spokesman said.

“People can also keep track of their usage through the Telstra 24x7 app as well.”

ACMA chair, Nerida O’Loughlin said on Wednesday that Telstra had breached its obligations under the TCP Code to send usage notifications to customers via email.

“Usage notifications give people due warning that they may be about to incur additional charges for their broadband services,” she said.

ACMA chair Nerida O’Loughlin.

“The code requires suppliers to send notifications within 48 hours of customers reaching specified data usage quotas on postpaid internet plans.

Telstra automatically refunded all customers who lodged a complaint about excess usage over the relevant period or incurred an excess usage charge of $5 or less.

It has also written to all other affected customers who can claim a refund via an online form.

“There are still some people who haven’t responded to the letters we sent about a refund and we encourage those people to get in touch so we can make this right,” the telco said on Wednesday.

Meanwhile, Ms O’Loughlin added that any further breaches of the code would likely result in more serious regulatory action.

“The ACMA has asked Telstra to report regularly on its progress of refunding affected customers until all customers have been reimbursed.”

“Consumers have a right to make informed decisions about their broadband use, and by failing to send these notifications in the correct format people have had to pay excess usage charges without sufficient warning,” she said.

“We encourage current or former Telstra mobile broadband customers to contact Telstra for a refund if they believe they incurred excess usage charges as a result of not receiving a usage notification.”