National: Telstra to Offer Refund for Slow NBN

Telstra has offered refunds to around 42,000 customers who experienced slow National Broadband Network (NBN) speeds.

The service provider admitted that it may have made false or misleading representations in its advertising, in breach of the Australian Consumer Law.

An analysis by the Australian Competition and Consumer Commission (ACCC) found that 26,497 people, or 56 per cent of the paying customers, were not getting the speeds that were promised by the NBN advertising, which claimed download speeds of up to 100 megabits per second (Mbps) and upload speeds of up to 40 Mbps.

“Our investigation revealed many of Telstra’s FTTN and FTTB customers could not receive the maximum speed of their plan,” said ACCC chairman Rod Sims.

Telstra will offer customers the opportunity to switch to another plan with refunds, or cancel their plans at no charge.

Sims said while he is happy the ACCC took the initiative to come forward and notify the consumer watchdog about the issue, it remains a problem industry-wide.

“It is an industry problem where consumers are often not getting the speeds they are paying for … We will continue to investigate other retail service providers selling broadband plans over the NBN and take enforcement action where appropriate.”

Source: SBS, ABC, AFR

National: Government Threatens Mandatory Takata Airbags Recall

The Australian government may impose a mandatory recall of defective Takata airbags if car manufacturers are not doing enough to fix them voluntarily.

The malfunctioning Takata airbags, which have been linked to 18 deaths and over 180 injuries around the world, may explode and launch metal shards at passengers when deployed.

Investigation by consumer advocate group CHOICE revealed that 12,300 vehicles with faulty airbags are still on Australian roads, and even some of the replacement device are similarly potentially malfunctioning.

In a statement released on Monday, Minister for Small Business Michael McCormack warned car manufacturers that the federal government has “the power to impose mandatory recalls if necessary”.

Car manufacturers involved, including BMW, Chrysler, Dodge, Ford, Honda, Ferrari, Jeep, Lexus, Mazda, Mitsubishi, Nissan, Performax, Subaru and Toyota are currently doing voluntary recall programs. Lexus and Toyota have admitted to be replacing faulty airbags with identical ones, and would need to refit some of the vehicles.

CHOICE spokesman Tom Godfrey said the use of potentially defective airbags as the replacement was disappointing. “With 2.3 million vehicles in Australia requiring their potentially lethal Takata airbags to be replaced, it’s clear the car companies are under pressure to fulfil their obligations under Australian consumer law,” Godfrey told News.com.au.

“However, refitting vehicles with the same dangerous airbags still leaves people driving ticking time-bombs.”

The Australian Competition and Consumer Commission has started an investigation into the matter.

Chairman Rod Sims said consumers should act as soon as they can. “Do not ignore or delay responding to a letter from your car’s manufacturer or retailer asking you to have your car’s airbag replaced,” Sims said.