Telstra Penalized Millions for Reducing Customer Internet Speed Without Notification

A recent court decision has resulted in a significant fine for an Australian telecommunications company due to deceptive business practices. The company, a leading provider, was penalized with a fine of approximately $11.87 million USD. The violation concerned internet plans, where the company had promised high-speed internet to its customers. It was discovered that the company had reduced the internet speed of approximately 9,000 customers without informing them. The ACCC revealed that Telstra, operating under its low-cost brand Belong, had moved 8,897 customers to lower-speed plans without their consent. This process reduced the upload speed of their internet connections by half. The ACCC stated that the changes occurred during October and November 2020. Telstra’s lack of communication deprived customers of the chance to evaluate whether the new internet speed was suitable for their requirements. The company is now required to provide compensation to the affected customers.