Telstra Misleads Customers Over Broadband Speed Downgrade, Australian Court Rules
Australia's Federal Court has found telecom giant Telstra liable for misleading customers about a broadband speed reduction. The ruling stems from a lawsuit filed by the Australian Competition & Consumer Commission (ACCC) in December 2022.
The ACCC alleged that Telstra downgraded upload speed for around 9,000 residential customers without their knowledge or consent between October and November 2020.
"Telstra's failure to inform customers of the service alteration deprived them of the opportunity to assess the suitability of the modified service for their needs," said ACCC Commissioner Liza Carver.
The ACCC sought penalties, consumer compensation, and other remedies, with the court set to issue its final judgment at a later date.
"We hold major broadband service providers to a higher standard and believe that affected customers deserve compensation for receiving an unapproved service," Carver added.
Telstra did not respond to a request for comment.